A business credit card is the ultimate weapon in the battle to keep your new business thriving. Cash back rewards, credit perks, and all the other needed tools that keep company growth a reality. Business credit cards aren’t just limited to more significant enterprises anymore, and small business credit cards are made just for startups, freelancers, and sole proprietors.
Having a business credit card makes it easier to keep your work and personal financials separate. The use of one can also aid small businesses by helping them save thousands of dollars yearly with “cash back” perks.
So what is better for smaller startup companies, Brex or Ramp? They are both two of the top business credit cards available. So let’s make this as simple as possible. Below, we can run comparison notes, so you will know which card fits better in your company’s wallet.
Try TaxRobot, Get an R&D Credit of up to $250,000.
Simple & Easy Setup for Maximum Returns.
BREX vs. RAMP for Startups: The Great Card Debate
One of the best things is that both options, Ramp, and Brex, give exceptional spending limits based on your company’s bank account balance, considering other factors. Neither of these options requires a personal guarantee, which VC-backed founders need to consider an absolute priority. Here we can compare the two credit options, Brex and Ramp, to see which cards are best for your early-stage business.
For help with your startup taxes, contact us today.
What is a BREX credit card?
BREX card is a credit card and a better option for a funded company. This card offers a healthy spending limit based on funding and business performance, and they have an excellent rewards program for companies who are well funded.
What is nice is you can get points for spending, including higher point rewards for key startup expense categories.
Related: Research and Experimentation Tax Credit Guide
What is a Ramp credit card?
Ramp is a credit option that combines the benefits of a corporate credit card and an expense management tool meant more for established companies. Such tools are used in the analysis, expense report creation, expense policy creation, and personal reimbursements. A Ramp card is a heavy hitter type credit card for series A to series C companies dealing with rapid increases.
All About That Brex
Brex is perfect for early-stage companies because they have been in the business longer, and Brex offers a more established, mature credit on the market. Brex is genuinely the more popular online business banking solution around and is widely known for its funding to newer companies and young budding enterprises.
Brex is a corporate card that offers exclusive rewards built for full business potential, which is why it is a favorite choice of many entrepreneurs. The rewards can maximize every dollar you make, on top of discounted services that will help your company flourish in the future.
Unlike regular company credit cards, a Brex card is paid off daily, similar to a traditional debit card. Purchases that are made are deducted from your Brex bank account, and this means you only can spend the amount of money that is currently available at any given time.
This style of card is appropriate for early-stage companies that are larger. The benefits of Brex come down to the fact that it is a more straightforward card perfect for an early-stage business. They offer complete banking needs at no extra cost, which is valuable to a startup.
Brex’s downside is that they have stopped focusing on smaller startup companies like they once had in the past.
Related: IRC Section 174: Get Lower Tax Bill for Investors
All About Ramp
Ramp card is better suited for companies that are growing quickly, ones that have bigger payrolls and higher budgets. The Ramp credit card offers a generous 1.5 percent cash back, with no exceptions.
This card works well for larger companies that have a high approval rate. Their bill pay is superior to any credit card and doesn’t require the opening of any savings or checking account. Conveniently, you can connect the card to an already existing bank account. One of the pros of the Ramp card is that you can switch to it more easily.
Ramp focuses more on later-stage companies with features like expense approval, reimbursement control, and other process controls. Fit for companies that have finance teams in place. Also, unlike other cards, Ramp is the only company credit card built around the idea of keeping the money in your bank.
BREX or RAMP for a Startup
In the summer of 2022, Brex declared they were leaving the small business market. This announcement caused a lot of confusion, and many clients received cancellation emails. However, Brex clarified that they still serve startups that had raised professional funding.
Smaller business owners should probably not try to work with Brex. Note that Ramp is still trying to service small to mid-size businesses and requires only a 75 grand deposit in the bank to apply for an account, so small companies may want to consider them.
Better For Travel?
A specific feature that has become increasingly popular from Brex and Ramp is their development of travel features for startups with teams. Both providers are rapidly developing features to make managing their cashout easier for companies at scale. For businesses with teams who travel, Ramp, in particular, has some exciting features that help keep travel spending in rule and stay within a company’s travel budget.
However, Brex has a mobile app working, and Ramp has yet to create one. The Brex mobile app is pretty essential for travel. After you charge something, say at a restaurant meeting on an island, you’ll get a notification on your phone. This is great for teams that are considered high-travel.
Related: What is the Employee Retention Credit?
In summary – don’t go with a standard card if you are a VC-backed company! Get a solution like Brex or Ramp best suited for the company! A card specifically for your needs includes some unique rewards and benefits for a startup on the way to success.
TaxRobot is an AI-Powered R&D Tax Service that can make tax time easier than ever. Contact us today.