Brex vs Airbase: Do They Really Compare?

Brex vs Airbase

There is a battle for spend management brewing, and many questions are floating about.

Consider a market for fintech where payments totaling $25 trillion are processed annually in the U.S. alone. Imagine then that the market leader with a 42% market share is an 1850-founded business whose product has essentially remained unchanged for the preceding few decades.

*Cue investors pulling out their cheque books*

The market leader in that fintech sector, B2B payments, is AMEX, and venture capital money is flowing there just as quickly as you might anticipate. Five businesses, including Brex, Divvy, Ramp, Airbase, and Teampay, are aiming their guns against AMEX, much like Netflix previously did with Blockbuster.

The typical business owner expects their line of credit to be determined by their personal credit score and is typically seeking for a low-cost product that earns them travel rewards.

Startups with funding require something different:

• Rewards that IT, biotech, and e-commerce enterprises find appealing
• A credit or spending cap based on the financial sheet of the business
• On the credit card, there is no personal guarantee.
• Integrations between accounting software and low-cost bookkeeping
• Financial management tools for teams

Spend management is a long-standing issue, but it is getting more difficult to solve. Business purchasing is growing more decentralized as remote and hybrid work become the norm in the workplace. The number of software buyers in SMB and mid market businesses has increased by a factor of 12x. Additionally, due to the development of SaaS, businesses are spending on a wider range of goods that affect every aspect of their operations. It gets harder and harder to manage everything when there are more spenders and more goods to buy. Hence, the discussion Brex vs Airbase

What is Brex

Brex is an all-in-one financial management tool that aims to assist entrepreneurs, finance teams, and staff members in making wise financial decisions and accelerating business growth. In one location, it provides banking services, credit cards, capital, and expenditure management.

Brex is a fantastic option for start-up and small businesses. Their cards don’t require personal guarantees, and you can change your borrowing limits in accordance with the revenue of your business.

You can gain access to exclusive privileges and discounts that are only available to the most valuable account holders as you gain recognition as a member.

When it comes to corporate credit cards, it can be difficult to amass the exact amount of credit your business requires. This is due to the fact that more lenders are requiring personal guarantees and unique credit scores before they will approve you for an account. Brex simplifies things, particularly for startups as they don’t need personal guarantees to be approved.

The Brex card is made exclusively for companies and is supported by the Mastercard network. Without having to risk your own money, the incoming income in your business will directly affect your credit limit. Based on how much money small businesses spend and how many sales they make, all eligibility criteria are examined.

It’s crucial to keep in mind that this company credit card is a charge card that requires full payment every 30 days. This isn’t the best corporate credit card if you’re looking for ones that let you carry a balance.

The majority of account holders have their outstanding balance automatically deducted from their business debit account every 30 days.

Pros:

• Exclusive discounts from Amazon, Apple, Google Ads, and more
• Interfaces with QuickBooks, NetSuite, and other expense reporting platforms
• Borrowing limit based on company cash flow
• Ideal for small to large businesses

Cons:

• It can be hard for small businesses to qualify
• Don’t have any introductory offers

What is Airbase

Airbase is primarily a spending management company with products that are appropriate for many types of enterprises. They are best recognized for its spending platform and accounting software.

However, they also provide an intriguing corporate card that businesses may make use of.

As you may anticipate, Airbase offers a bundle that includes both their leading software and corporate card. Many of the advantages, like cashback rewards, are comparable to those of other corporate cards.

However, you’ll also have access to accounting software that performs a team’s worth of work for a lot less money.

Indeed, Airbase is aware of how crucial it is to give new and small businesses the chance to establish credit. Before being approved, they don’t need credit checks or personal guarantees. Additionally, they will probably grant most clients up to 20 times larger restrictions than other carriers.

These advantages might be incredibly alluring to business owners and fledgling companies that require assistance growing. It’s also the kind of card you should pick if you’re prepared to work without regard to rewards.

Overall, there are a number of fantastic reasons Airbase might be your company’s corporate card provider.

Pros:

• Pre-funded cards offering 2% cash back or more
• Alerts for duplicate purchases and fraud detection
• Integrations with Quickbooks, Xero, and Gusto
• Preparation of 1099

Cons:

• Only some accounts are eligible for auto-lock.
• Certain accounts have different account fees.
• Primarily serves mid-market and enterprise-level clients.
• Primarily concerned about cutting costs
• There is no company checking account

Brex vs Airbase: What is Common?

Brex vs Airbase location at the nexus of corporate cards and cost management enables them to provide a variety of compelling services, including:

• The cards themselves are directly connected with user-friendly software. Any time a card is swiped, software can now manage and approve payments.
• Automated expense reports with live spending monitoring and control
• Virtual cards with improved security and monitoring capabilities
• High levels of competition in price and incentives
• For financial teams, the culmination of all this functionality is a magnificent promise of control, transparency, and efficient operational processes.

These players have developed intuitive, employee-first experiences and provide real-time visibility, which the outdated systems do not.

See: FreshBooks vs QuickBooks

Brex vs Airbase: Product Comparison

Which is the Right Card for You?

• Brex

Brex is an excellent choice if you’re a business searching for a card with expandable borrowing limits.

Their cards are accessible to both big and little enterprises, with credit limits determined by each one’s cash flow. They also provide numerous advantages, including special savings from renowned stores.

The application process is where this card mainly falls short, especially for small firms.

There are requirements to follow, particularly with relation to a company’s cash flow, which can be difficult for smaller firms. It’s significant to remember that Brex does not provide any initial discounts to new customers.

• Airbase

The majority of business cards have several high-tech elements, but Airbase has even more.

You’ll gain access to the advantages of integrating accounting software and submitting digital receipts. Built-in budget management is one of their most distinctive features, which can help you make sure your business is spending wisely.

One of the issues with Airbase is that several functions can be challenging to navigate and use, especially for first-time users. The organization also needs to make a few changes to its spending monitoring system.

Why Switch From Brex?

Many business owners will no longer be eligible for this solution as a result of its decision to terminate all small enterprises with fewer than 50 employees. As a result, you’ll need to find a substitute for your banking requirements. Here are the new requirements, according to Brex, to be qualified to utilize their financial services:

• You have received any amount of stock investment (accelerator, angel, VC or web3 token)
• Need to earn more than $1 million annually.
• You employ more than 50 people.
• Have an excess of $500,000.
• You are a tech startup on the route to fulfilling the aforementioned requirements, and a current customer or business partner referred you.

In Conclusion

The banking solutions that are most suitable for your needs should be clearer to you now that you are knowledgeable about the top spend management programs. You’ve taken a step toward choosing the best long-term banking strategy for your company.

Related: Comparing Xero vs NetSuite