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Comment by soared | Hacker News Reader

How is this different from a, for example, chase business credit card (or debit card for that matter)? If you have funding but no credit history you can get one. I was 19 when I got mine. I don't understand how connecting to my bank account provides 10-20x more credit if you're already verifying my startup's funding.

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1 - chase will require a personal guarantee, what that means is that you’re personally responsible for the credit card. Your ssn is on the line. With Brex, we underwrite your company.

2 - our credit algorithm is actually very different and the limit changes according to your bank balances.

3 - it’s actually a credit card (technically a charge card), so it has all the protections of a standard credit card, people dont have access directly to your balance like a debit card.

Does that make sense?

Out of curiosity, what happens in the unfortunate case of a startup closing shop while still carrying a Brex balance?

Ie, does Brex have some legal senior debt-holder claim against the company’s assets? And what happens to the personal credit history of the founders, does it remain untarnished since they were never personally responsible?

We don’t allow people to carry a balance, it’s technically a charge card. Personal history is never toched

What are the benefits over a prepaid credit card?

Oh and if you mean the secured credit card - we can give higher limits without having to set up a security deposit and tie up your cash

1 - you don’t have to worry about prefunding the card, just spend!

2 - you have 30 day float, so more time to pay the statement

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