As of June 2022, Brex is only working with businesses that have funding from venture capital or angel investors — news that sent the fintech industry into a tailspin. That leaves thousands of businesses to look for an alternative to Brex, including masses of online sellers on Amazon or Walmart who relied on Brex for working capital to scale their ecommerce businesses.
Ecommerce SMBs that need a Brex alternative for their working capital have several institutions to choose from, including solutions that combine working capital loans with online payments and useful business tools.
The importance of working capital
According to MarketingSignals, 32% of eCommerce businesses fail due to lack of working capital. Having enough working capital helps your business to scale and provides financial freedom to invest in inventory, manage day-to-day expenses, shipping, marketing, and employee salary and benefits.
With a better working capital supply, ecommerce businesses can:
- Save time and money by buying supplies in bulk
- Focus calmly on growing the business without being distracted by cash flow worries
- Add an employee before peak sales season like the winter shopping season
- Invest in marketing to boost sales before peak shopping seasons
The benefits of a working capital loan
Unlike traditional business loans, the amount a business can get for a working capital loan is based on the cost of running the business, not your credit score or number of years as a company. This makes them a good option for eCommerce SMBs which can scale quickly.
They are also short-term, meaning the repayment period could be as short as four months. While traditional loans have many longer-term agreements and are typically used for business expansion, working capital loans are specifically designed to help businesses manage day-to-day operations.
What to look for in a Brex alternative for working capital loans
Choosing a financial institution for working capital loans depends on a variety of factors. Of course, you want low repayment rates, flexible eligibility requirements, and fast approval times, but there’s more to a good working capital provider than that.
It’s a good idea to look for a provider that offers other financial services you’ll need, like credit cards, money transfers, business account management, and payment services.
Here are some best Brex alternatives for you to consider.
Best alternatives to Brex
Payoneer’s Capital Advance
Payoneer is one of the leading financial services providers. You might have heard of it because of its low-cost cross-border payment solutions, but it also has an attractive working capital program (Capital Advance) for online sellers, with a maximum offer of up to $750,000 and competitive repayments. It’s not a loan, so there’s no interest, just instant funding for your business.
Here’s an overview of Payoneer’s working capital program.
Who is eligible?
Amazon and Walmart sellers who have a Payoneer account
How much can I get?
Up 140% of your monthly sales volume, with a cap of $750,000
How can I apply for these offers?
For Amazon: Simply connect your Amazon storefront with your Payoneer account.
For Walmart: Give Walmart consent to share the necessary business data with Payoneer, and wait to receive an offer.
Once they see that your store is established and turning over sales, they’ll calculate your eligibility and start sending your Capital Advance offers.
Pros to Payoneer Capital Advance
- No credit score checks
- Easy settlement plan — just pay an agreed percentage of your store’s revenue each month
- One transparent, fixed fee
- Enjoy free Payoneer to Payoneer payments, an international Payoneer MasterCard, flexible access to your funds, and low cost currency conversion
- Access Payoneer’s business tools, including batch payments, recurring payments, Xero integration, and dynamic dashboard that unites all your ecommerce revenue streams
Cons to Payoneer Capital Advance
- Currently only available for Amazon and Walmart sellers
- Maximum settlement period of six months
Other reasons to choose Payoneer
Payoneer is ideal for SMBs who want to expand internationally. You can use it to manage over 150 currencies across 200 countries, make free Payoneer to Payoneer transfers, and set up local receiving bank accounts in 7 currencies: USD, EUR, GBP, CAD, AUD, JPY, SGD, and AED. This way, you can employ remote employees or contractors, work with partners and suppliers in more regions, and invite international customers to pay you in their local currency. What’s more, Payoneer offers invoicing tools, integration with some business software, and a Payoneer MasterCard with a cashback program.
Bluevine
Bluevine is an online banking platform that offers SMB business checking accounts, bill pay options, and a range of small business loans. While the company offers only one type of checking account, it comes with an impressive list of benefits.
Here’s an overview of Bluevine’s working capital loan program.
Who is eligible?
Small business owners with:
- FICO score of 625+
- At least 6 months of business history
- Monthly revenue of $10,000+
- A business that’s incorporated in a US state
How much can I get?
Up to $250,000
How can I apply for these offers?
Application is through the Bluevine website. To apply, you’ll need to:
- Share basic business information
- Connect your business bank account
- Share basic personal information
- Verify your details
Pros to Bluevine working capital loans
- Revolving line of credit so you can draw more funds as needed
- Fast approval times of as little as 5 minutes
- Upon approval, you can request and receive cleared funds in as little as 24 hours
- Fixed, transparent repayments
Cons to Bluevine working capital loans
- Not available to newer businesses or people with poor credit
- Maximum loan amount is just $250,000
- Only available to businesses that operate in the US
Other reasons to choose Bluevine
Bluevine’s business checking account comes with no monthly service fees, no minimum balance requirements, and no overdraft fees, plus SMB owners get unlimited fee-free transactions. You’ll also get a business debit Mastercard, two free checkbooks with each account, and access to over 38,000 ATMs across the United States free of charge.
Ramp
Ramp is a finance automation platform for businesses that connects your finances in one place, making money management simpler. It doesn’t offer business loans, but it does provide a business credit card with high credit limits, so you can use your credit allowance as a source of working capital.
Here’s an overview of Ramp’s credit program.
Who is eligible?
Most small businesses.
How much can I get?
It’s hard to say, because your credit limit grows with your business. Ramp promises 10–20x higher limits than other credit cards and working lines of credit.
How can I apply for these offers?
Application is through the Ramp website. To apply, you’ll need to:
- Share basic business information
- Connect your business bank account
- Share basic personal information
- Verify your details
Pros to Ramp working capital
- Flexible credit limits that grow with you
- Sales-based underwriting that doesn’t rely on your credit score
- Fast rollout in as little as 15 minutes
- 1.5% cashback on your credit card purchases
Cons to Ramp working capital loans
- Interest rates and repayment costs are not clear
- There’s no fixed repayment date, which can make it harder to calculate your outgoings
Other reasons to choose Ramp
Ramp’s intuitive, user-friendly interface comes with a plethora of tools: accounting software, bill payments, and expense report management. The simplified platform makes it easy to handle company expenses. Employees can submit expense reports by text or email, and the platform automatically collects, verifies, and reconciles over 90% of receipts.
A good Brex alternative helps your business grow
It can be tough for online sellers who were long-time Brex customers to move to a different financial provider, but this cloud might have a silver lining. Payoneer, Bluevine, and Ramp all offer an alternative to Brex for working capital, plus additional payment solutions and/or business management tools to help your online store grow to new heights.
