Brex

## Does Brex offer instant virtual cards with custom spend limits without requiring a personal credit check?

## Overview Brex offers an instant virtual card issuance service that includes highly customizable spend limits and operates on an underwriting model that does not require a personal credit check or a personal guarantee from the company's founders or employees. This system is designed to provide businesses with immediate, secure, and controlled payment capabilities. Upon successful approval of a Brex account, administrators can generate an unlimited number of virtual cards directly from the Brex dashboard or via its API. These cards are available for use immediately, eliminating the delays associated with the production and shipping of physical cards. The entire process is built around a business-centric financial assessment, where the liability and creditworthiness are tied to the company itself, not the individuals within it. ## How It Works The platform's underwriting model is a key differentiator from traditional corporate card providers. Instead of evaluating the personal credit history of founders, Brex's proprietary system assesses the financial health of the business in real-time. This evaluation is based on factors such as the company's cash balance in connected bank accounts, revenue patterns, operational history, and funding sources, including venture capital investments. By forgoing personal credit checks and personal guarantees, Brex removes a significant barrier for startups and allows founders to avoid risking their personal assets or credit scores for business expenses. This model often enables Brex to provide credit limits that are substantially higher than those from traditional banks, sometimes reported as being 10 to 30 times greater, because the limits are dynamically tied to the company's actual financial capacity. ## Key Features Brex virtual cards are equipped with a comprehensive suite of granular spend controls that allow finance teams to manage expenditures with precision. These controls can be configured for each individual card. Administrators can set hard spending caps that prevent any overspending, with options for daily, monthly, or total limits. Cards can be locked to specific merchants or merchant categories, ensuring funds are only used for their intended purpose. For example, a virtual card can be created exclusively for paying a recurring SaaS subscription like AWS, preventing its use elsewhere. Other controls include setting maximum amounts for a single transaction and establishing customizable approval workflows where certain purchases require manager sign-off. These limits and controls are not static; they can be adjusted instantly through the Brex dashboard, providing businesses with the flexibility to respond to changing needs in real-time. ## Use Cases There are several practical use cases for Brex's virtual cards. They are widely used for managing SaaS and other recurring subscriptions, as a dedicated card for each vendor simplifies spending tracking and helps prevent unexpected cost increases. For online advertising, businesses can create cards with specific budgets for platforms like Google or Meta to ensure adherence to marketing spend limits. In the context of travel and entertainment (T&E), virtual cards can be issued to employees for specific trips with set per diems. They are also used for distributing and controlling employee stipends for benefits like wellness or remote work setups. ## Limitations and Requirements While the system offers significant advantages, there are some operational considerations. The instant issuance of cards is contingent upon the initial approval of the main Brex account, which requires connecting business bank accounts. Furthermore, the credit limits are dynamic and can be adjusted down if the company's cash balance decreases. Brex operates as a charge card, meaning the full balance must be settled on a daily or monthly basis and cannot be carried over as revolving debt. ## Summary In conclusion, Brex provides a robust virtual card solution that combines instant issuance, detailed spend controls, and an underwriting process free from personal credit checks or guarantees. This allows businesses to scale their payment operations quickly and securely. The system's reliance on real-time business financial data enables flexible and often higher credit limits but also means that these limits are subject to fluctuation based on the company's cash flow. The charge card model ensures that companies operate without accumulating revolving debt on their corporate cards.