Home Topics Finance Brex Cash Review 2021: Cash Management Account

Brex Cash Review 2021: Cash Management Account

Brex Cash is a Cash management account This allows you to store your funds as uninvested cash with the program bank or invest in a money market fund for return. With no fees and unlimited digital transactions, Brex Cash offers a first technical alternative to traditional commercial bank accounts.

The Brex Cash account provides access to the rewarding Brex credit card, integrated expense management tools and the Brex Mobile app. However, Brex Cash is not available for all types of companies and does not have the most important functions of business banking, e.g. B. the possibility to withdraw and deposit cash at an ATM.

Brex Cash is best for small business owners who:

  • Would you like a free cash management account with unlimited transactions?

  • Prefer to manage all of your finances online.

  • Want some control over where their funds are stored and invested.

  • No need to withdraw or deposit cash at an ATM or branch.

  • Have organized their businesses as non-individual liability companies (C-Corps, S-Corps, LLCs).

For and against

  • No monthly fees, no minimum deposit, and no minimum balance requirements.

  • Unlimited no fee transactions.

  • Provides two options for keeping your funds with the option to invest in a Money market funds Earning income.

  • Receive instant payouts on ecommerce sales.

  • Includes a Brex credit card that earns rewards.

  • Not available for companies without legal personality (e.g. sole proprietorships and partnerships).

  • Low return on money market funds.

  • No commercial bank account that lacks traditional banking features like debit cards and ATMs.

Brex Cash at a glance

Minimum requirement for the opening deposit:

  • Cash not invested: no return.

  • Cash invested in money market funds: 0.03% 7-day return as of this writing.

Earn 20,000 points when you link payroll to Brex Cash and 10,000 points when you spend $ 3,000 on your Brex card in three months.

In the case of Brex, the deposits are FDIC insured

How Brex Cash works

Brex Cash is a cash management account provided by Brex Treasury LLC, a broker-dealer registered with the Securities and Exchange Commission and a member of the financial industry regulator and Securities Investor Protection Corp. Unlike traditional commercial bank accounts, Brex Cash has a Brex Cash account and you have two options for storing your money.

By default, your funds will not be invested in the Brex program bank LendingClub Bank with Federal Deposit Insurance Corp. insurance. stored up to $ 250,000. The second option is to invest your money in a money market fund, the Dreyfus Government Cash Management Fund. These funds earn and maintain the current 7-day waiver rate – 0.03% at the time of this writing – SIPC insurance up to $ 500,000.

Brex allows you to split your funds between these two options with no restrictions on how funds are allocated. You can choose to allocate your funds as a percentage split (e.g. 50% univested, 50% in the money market fund) or as an upper limit for a dollar amount (e.g. 100,000 USD invested in the money market fund at any time). Any additional funds will automatically be allocated to an FDIC insured account).

To open a Brex Cash account, create an online account and complete an application on the Brex website. Only registered companies – C-Corps, S-Corps, LLCs, LLPs – that are registered in the US can apply for a Brex Cash account.

You will need to provide basic information about yourself, your business, and any additional owners with 25% or more stakes in the business in order to complete the Brex Cash application. You will also need to provide photo ID and an employer identification number for your company.

After submitting your application, you can check the status by logging into the Brex dashboard. Brex will generally review applications within five to seven business days and will contact you directly if additional information is required.

Once your application has been approved, you will receive an activation email to set up your account. To do this, you will need to make your first deposit from an external source of finance such as another bank account by initiating a wire transfer or an ACH transfer.

You will also receive a virtual Brex Mastercard and can sign up to receive a physical card. You can send your Brex card anywhere in the US. It should arrive within five to seven working days.

After your first deposit is complete, you can use your Brex Cash account to manage your finances by adjusting user permissions, setting up payments, downloading the mobile app, integrating with other business tools and much more.

You can also change your fund allocations at any time via the Brex dashboard.

Where Brex Cash stands out

No fees: Brex Cash has no monthly fees, no minimum deposit requirements, and no monthly balance requirements. Additionally, there are no transaction fees for this account, including domestic and international ACH payments, sending and receiving checks, inbound and outbound domestic transfers, and inbound and outbound international transfers (although the recipient’s bank may charge a fee after receiving international transfers) .

More control over your money: In contrast to a typical Business accountBrex Cash gives you more control over your finances, with the option to allocate funds to an FDIC insured account or invest in a money market fund for a return, or split your funds between the two.

Instant Payouts for Ecommerce: Amazon sellers who sign up for Brex Cash can use instant payouts so they can get paid for their sales in seconds instead of having to wait the traditional 14 days to get paid. To qualify for instant payouts, Amazon sellers must have one month of operating history and monthly net sales of at least $ 500. Brex offers a maximum cash deposit amount that can be paid out immediately based on your sales performance.

Brex card: The Brex Cash account includes access to the Brex credit card, which has no fees and no personal guarantee and is automatically paid daily, although you have the option to request monthly bills. With the Brex Mastercard you receive reward points in different categories:

  • 8x points on carpooling including Uber, Lyft, Taxi and Scooter.

  • 5x points on flights and hotels booked through Brex Travel.

  • 4x points for restaurants and restaurants.

  • 3x points for eligible Apple products such as Mac and iPhone via the Brex portal.

  • 1.5x points on ads on Facebook, Google, Amazon, Microsoft and more.

  • 1x points for everything else with no limit on how much you can earn.

You can redeem these points for cashback, gift cards and travel.

Integrated tools for cost management: With Brex Cash, you get built-in expense management tools that you can use to set up transaction approval processes, schedule recurring payments, and customize user roles. You can automatically reconcile receipts, set monthly credit limits, and send automatic reminders for missing transactions.

You can also use the Brex mobile app to deposit checks, check your balance, approve or reject transactions, upload receipts and use your cards. You can also integrate your Brex Cash account with business tools like QuickBooks, Xero, NetSuite, Expensify, Concur and Pilot to streamline your accounting processes.

Where Brex Cash falls short

Not available for unincorporated small businesses: The Brex Cash account is only available to registered companies. In other words, sole proprietorships and partnerships cannot apply. While this is seemingly minor, it actually rules out a large chunk of small businesses in the US

According to the SBA, sole proprietorships and partnerships account for 86.4% and 7.4% of non-employer companies, respectively. In addition, this Entity types make up 14.1% and 11.8% of small employers.

Low return on money market funds: If you use a Brex Cash account to invest your money in the Dreyfus Government Cash Management Fund, you will currently earn the 7-day return of 0.03%. Although this rate can change, there are checking account competitors offering higher rates. The freedom BlueVine Business current accountFor example, currently offering an APY of 1% on all balances up to $ 100,000.

If you’d rather keep some funds in a less accessible account, High-yield business savings accounts can also offer higher returns than the Brex Cash account – and often they also offer no fees and online opening functions.

No ATM access: You can use your Brex card to make purchases and your card will be automatically paid for on a daily basis, much like a business debit card. However, unlike a business debit card, you cannot use your Brex card to withdraw or deposit cash at an ATM.

Unlike most traditional commercial bank accounts, Brex doesn’t offer a network of ATMs where you can make physical check deposits, check your balance, or make bank transfers, and Brex doesn’t offer in-person branches.

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