Startups in the US constantly battle between growing fast and managing cash flow. High-Limit Corporate Cards from Brex and Ramp offer a way out. They give startups more buying power without needing the founder’s personal backing. This leads to quicker vendor setups, easier payroll and payments, and the ability to increase spending as the company grows.

We’re comparing the Brex Corporate Card and the Ramp Corporate Card. You’ll learn about their credit models, credit limits, rewards, accounting integrations, and how they handle expenses. Plus, there are tips on applying for a card without personal guarantees, how to get better credit limits, and managing risks.

This guide is for startup founders, CFOs, finance managers, and ops teams looking at credit cards for startups. Whether you’re into the Brex Corporate Card, Ramp Corporate Card, avoiding personal guarantees, or managing corporate expenses, this article will guide you. It will help you pick and use the best card for quick growth.

Key Takeaways

• Brex and Ramp offer high-limit, no personal guarantee credit options tailored to startups.
• These cards speed vendor onboarding and free founders from personal liability on business spend.
• Compare underwriting, limits, rewards, and integrations to match your finance workflows.
• Prepare revenue data and clear expense policies to improve approval odds and limits.
• Strong expense controls and integrations reduce reconciliation time and accounting errors.

Why startups need high-limit corporate cards

Startups often see their spending go up and down as they grow. Cloud services, marketing, paying contractors, travel, and adding new team members can all cost more in some months. A business credit card with a high limit helps manage these costs. This lets teams pay their bills on time without the founders having to cover costs themselves.

Having a corporate card with a high limit does more than let you buy more things. It turns big one-time payments into smaller, regular ones. This helps teams plan their budgets better and keep track of company spending more clearly.

It’s important for early-stage companies to keep their personal and business money separate. Legal separation helps do this. Using corporate cards keeps the business’s debts off the founders’ personal credit. This helps protect their credit scores and makes it easier for investors and auditors to understand the company’s finances.

Cards that don’t require a personal guarantee from the founders lower their risks. They also make investors happier because there are no personal debts mixed in with the company’s finances. Having clear financial records helps when trying to raise more money.

Modern financial companies look at a startup’s revenue, bank balances, and cash flow when deciding on credit. This can lead to faster approval and bigger starting limits than traditional banks offer. For startups with venture funding, this means they can quickly get money to take advantage of discounts or agree to better payment terms with suppliers.

Below, you can see how certain benefits of high-limit cards meet the needs of startups.

Choosing the right business credit card for startups can make a big difference. It should fit how the business spends money and offer useful tools for managing expenses. With the right high-limit corporate card, founders can focus more on growing their business and less on financial worries.

High-Limit Corporate Cards: Brex and Ramp for Startups

Startups choosing between Brex Corporate Card and Ramp Corporate Card will find both tailored for rapid growth. They offer virtual cards, controls on spending, and dashboards for real-time finance management. This helps small teams manage their finances better.

Brex emphasizes rewards, managing corporate cash, and syncing with QuickBooks, Xero, and NetSuite. Ramp focuses on saving money, automated processes, and a strong cashback scheme, with up to 1.5% back on various spending categories.

Both have tools for managing vendors, using virtual cards for contractors, setting up approval processes, and linking with accounting systems. This makes following spending rules and matching expenses less of a hassle.

How high limits are determined

The limits set by these companies are based on business performance, not the founder’s credit score. Factors like bank balance, monthly income, cash on hand, deal history, and recent investments are important.

Having data linked to accounting and strong vendor relationships helps. Startups with regular income and stable spending might get higher starting limits. This is because some providers look closely at cash flow.

Certain lenders put more weight on venture funding and big bank deposits. Others look more at consistent revenue and past spending when setting a limit.

Comparing underwriting and risk models

Both the Brex and Ramp Corporate Cards often skip the personal guarantee. They use modern methods to check creditworthiness and keep a close eye on accounts.

Their risk controls include real-time information, automatic alerts, and limits that can reduce spending if something out of the ordinary is detected. They adjust credit limits based on how the company is doing and changes in its financial situation.

The way they underwrite can influence the initial credit offered and how quickly limits can increase. Startups making money tend to be approved quicker than those that are just starting out.

Brex Corporate Card: features and benefits

Brex uses a smart approach, focusing on your business’s finances and funding. This means startups can get a card without affecting the founder’s credit. They look at your business bank account, any funding you’ve received, your business type, and financial health.

To apply, you need a registered U.S. business. Brex checks things like anti-money laundering and your identity. Some businesses might have a harder time qualifying due to stricter checks.

No personal guarantee credit card choices depend on cash flow and revenue. Brex gives out several virtual cards with one limit. This way, teams can spend flexibly but within the company’s rules. The more stable and strong your finances are, the higher your limit might be.

Brex rewards fit startup needs perfectly. You get more points for software, cloud services, advertisements, and trips. Startups enjoy bonuses that help reduce initial costs. Some options might have fees, but various benefits and discounts can make up for them.

Managing expenses is easier with Brex’s tools. They work smoothly with QuickBooks, NetSuite, and Xero. This means less work for handling payrolls, bills, and other expenses.

Thanks to automation, bookkeeping needs less time and has fewer mistakes. All transactions are automatically sorted for the accounting team. Plus, you can easily make reports for investors or audits, keeping track of everything accurately.

Ramp Corporate Card: features and benefits

Ramp specializes in saving money and quick approval for expanding businesses. It offers accounts with no need for the founders to be personally liable. It looks into your business’s cash flow, bank statements, and spending habits. The online application process connects to your business bank accounts. This allows for quick automated decision-making.

No personal guarantee approach and approvals

Ramp checks your business’s cash flow and recent money coming in, not your personal credit. Businesses in the US must go through KYC and AML checks at the beginning. Some industries considered high-risk might need to give more documents.

It connects to your bank and reviews your transactions to understand how you spend money. This method leads to quick approval. It also means founders don’t have to risk their personal credit.

Cashback, rewards, and cost-saving automation

Ramp’s cashback is about direct savings, not points. Your business earns cash back that goes right into your account. This lowers your expenses.

It has tools that stop you from paying for duplicate subscriptions and find bad deals. Along with referral credits and sometimes welcome bonuses, Ramp offers real value to startups.

Built-in expense controls and platform integrations

Ramp lets you set limits on spending for each card and by vendor. It uses approval processes that are mostly automated. This means less manual work.

It works well with QuickBooks, Xero, NetSuite, and many expense management systems. By doing so, it makes handling your business’s expenses easier and faster.

Comparing Brex vs Ramp for startups

Startups looking at Brex and Ramp Corporate Cards need to know a few things. They should consider limits, fees, tools, and support. This will help finance teams pick the right platform for their needs.

Credit limits and pricing comparison

Brex usually gives higher first limits if you are venture-backed. It uses funding milestones and investor input to decide on limits fast.

Ramp’s limits are based on your cash flow and revenue. It can be flexible, and steady revenue can mean quicker limit increases.

Pricing changes depending on the card. Brex has different plans with more features that might cost more. Ramp’s basic service is free but charges for extra enterprise features.

Be aware of extra costs. These include fees for foreign transactions and cash advances, and set-up fees, which may vary.

Expense management capabilities

Brex and Ramp both make expense management easier, but in different ways. Brex offers lots of integrations and rewards for startups.

Ramp focuses on saving money automatically and offers easy cashback. Its automation can cut expenses without much work.

Differences in dashboards and reports are important for bookkeeping. Brex integrates well with accounting software and offers custom reports. Ramp has detailed spend tracking and easy report exports.

Both have great options for virtual cards. Brex has smart controls for dealing with vendors. Ramp uses automation to stop unnecessary subscriptions and prevent overspending.

Customer support and startup-friendly policies

The quality of support can speed up getting started. Both offer help through phone, chat, and in-app support, with special paths for growing companies. High-level plans usually get dedicated account help.

They have policies that help startups, like quick approvals and flexible credit increases. These help based on your funding. Both offer helpful guidance for finance teams.

Dispute and chargeback processes differ. Check if there are guides and APIs for custom needs or integrations.

This summary shows the key differences to help make a decision.

How corporate expense management improves with these cards

Brex Corporate Card and Ramp Corporate Card are changing the game for startups. They give finance teams control with real-time tools. This means they can manage budgets and cash flow better, with less guessing.

Real-time spend tracking and reporting

Both cards offer almost instant tracking of expenses. This lets teams see their spending right away. You can see live updates, break down costs by department, and make reports easy to share.

Finance leaders can sort reports by date, vendor, or who spent the money. This means clearer monthly updates and easier communication with investors.

Policy enforcement and virtual cards for teams

Managers can give out virtual card numbers for different needs. This makes it quick to handle payments safely.

You can set spending limits, control where cards are used, and even set expiration dates. This helps stop unplanned spending and eases adding new people or contractors.

Reducing reconciliation time and accounting errors

Connecting directly to accounting software means no more manual data entry. Automating receipt tracking and matching helps avoid mistakes and lost documents.

Setting up accounting rules and having ledgers ready to go makes closing the books faster. Teams report spending less time on accounts and fewer corrections with these cards.

Applying for a no personal guarantee credit card

Startups often think about speed and risk when getting a corporate card. They look at options like the Brex Corporate Card or the Ramp Corporate Card. These cards may not make the founder personally liable. This changes how underwriters check your application and what you need to show them.

Eligibility criteria for startups

Issuers usually want you to have a U.S. business and a business bank account. They also look for clear records of who owns the business. While some card providers might want to see how long you’ve been in business, others might look at your revenues or funding.

Startups with venture backing or those making money often get better deals and higher limits. But, if your industry is seen as high-risk or your finances look shaky, you might not get approved.

Documentation and financial data typically required

Card issuers often ask for your bank statements, documents showing how much money you make or pay in wages, and papers that prove your business is officially yours. They also need the EIN and IDs for the main owners. Having clear ownership info can make the AML and KYC checks go quicker.

Linking your accounting tools or bank accounts can help underwriters check your finances faster. Both the Brex and Ramp Corporate Cards do this to quickly see how you manage your money.

Tips to improve approval chances and limits

• Connect business bank accounts and accounting software before applying. This helps verify your financials in real-time.
• Applying after getting funding or reaching a sales goal can help get you a better initial credit limit.
• Showing you have regular income, good bank balances, or contracts with vendors can make your application stronger.
• Make sure your financial records are tidy and all in one place to show your cash flow is stable.
• Don’t apply for many credit cards at once. Spread out your applications to avoid issues.

Following these steps makes the application process clearer. Prep your documents and choose your timing well. This can help you get a no personal guarantee credit card. It can support your business’s growth without putting personal assets at risk.

Optimizing credit limits for startup growth

Choosing the right credit limits can help startups grow quickly while protecting their financial health. Founders should use credit limits as a tool. It supports hiring, vendor commitments, and getting new customers. Remember to base your decisions on solid financial signs and strict rules.

When to ask for a higher limit is key. It’s best after getting new funding, months of better sales, or when costs are steady. Think about times like planning hires or cloud deals. Ask for an increase when you have more cash and a history of paying on time.

Using spend patterns and revenue signals to justify higher limits

Gather evidence before you reach out. Have three to six months of regular transaction history, growing revenue, and bigger deposits ready. Make a clear dashboard showing your money coming in, going out, and your expected future spending to show to bank reps.

Banks often review accounts automatically when you link them to financial software. This might lead to a higher limit based on your performance. Yet, asking directly with detailed information can make getting a higher limit on cards like Ramp Corporate Card or Brex Corporate Card faster.

Balancing limit size with cash runway and risk

Higher limits mean more buying power, but also more risk if you’re not careful. Predict how it will affect your cash before raising your total limits. Approve each card based on financial oversight and set spending limits for each team or project.

Prevent spending too much by setting rules. Use budgets for each department, virtual cards for contractors, and alerts for unexpected spending. These steps help startups grow safely without facing unexpected debts by using a business credit card.

Managing risks and compliance with corporate cards

Startups need clear rules and modern tools for secure spending. Good processes reduce risk and make audits easier. They should use platform features to safeguard cash and maintain accurate accounts.

Fraud protection and charge dispute processes

Look for features like real-time alerts, card lock capabilities, controls by merchant, and straightforward dispute processes. These help act quickly on suspicious charges to cut losses.

Dispute steps usually involve reporting in a dashboard, collecting documentation, and awaiting the issuer’s investigation results. Encourage quick issue reporting and the use of virtual cards for safer spending.

Internal controls and approval workflows

Implement multi-level approvals for big expenses and assign virtual cards for specific project budgets. Role-based access helps prevent unauthorized purchases.

Streamline approval processes to ensure spending aligns with budgets. Regularly review card usage and limits to prevent unnoticed overspending.

Tax and audit considerations for startup finance teams

Correct expense classification is key for tax deduction and reporting to investors. Pair cards with accounting software for seamless audit preparation.

Maintain solid receipt and document storage policies. Work closely with external accountants during key financial events to stay in line with GAAP and tax regulations.

Conclusion

Brex and Ramp Corporate Cards offer big benefits for new companies. They need buying power but don’t want personal risks. The Brex Card is great for its rewards and syncs well with accounting software. Meanwhile, the Ramp Card gives cashback and helps save money automatically. Both cards make sure that the company’s spending doesn’t mix with the founder’s money.

These cards help finance teams manage money better. They allow for easy tracking, setting rules, and less work in matching receipts. Startups can handle their money smarter. They can grow their team, market their products, and develop new ones. This makes keeping the books and audits much easier.

What should you do next? Check if you qualify and hook up your bank and accounting for review. Then, see which card, Brex or Ramp, fits your spending needs best. Make sure to set up rules and limit approvals to keep risks low as you grow.

Choose your card wisely, keeping growth and accounting in mind. A good choice in card and expense management can really benefit your business. It helps avoid personal risk with no guarantee cards.