Fintech firm Brex has introduced a corporate card especially designed for early-stage startups to help them qualify based on funding rather than credit history.
Using Brex credit card, startup companies can get instant approval on cards that provides high limits and do not require any kind of personal guarantee.
The card boasts of integrated expense management software, which allows cardholders to just message or email Brex a picture of a receipt which is automatically matched to the transaction in the customer’s online dashboard.
At present, Brex has more than 1,000 customers and is now open to startups across the US. It takes just two-minute to fill an online application at its website Brex.com.
The startup has also raised a total of $57m from investors including Y Combinator Continuity, PayPal founders Peter Thiel and Max Levchin, Facebook investor Yuri Milner, financial services VC Ribbit Capital and former Visa CEO Carl Pascarella.
As a result of the transaction, Y Combinator Continuity fund partner Anu Hariharan and Ribbit Capital managing partner Meyer Malka will join the Brex’s board of directors.
Brex co-founder and CEO Henrique Dubugras said: “Startups that have raised millions and are poised for hyper-growth can’t get slowed down hassling with banks requiring personal guarantees and offering meager credit limits.
“Traditional credit models look at how much a company can pay back in a year based on profits, often disqualifying startups. We rebuilt the financial services tech stack from the ground up and created a new kind of card to specifically meet the needs of startups.”
Headquartered in San Francisco, Brex was founded in 2017 by the founders of Brazilian payments processor Pagar.me.