Popular Fintech company Brex recently announced they had decided to make a dramatic change to their business model by letting go of their small business customers to exclusively service bigger, more well-funded companies. The decision means tens of thousands of small businesses will soon be cut off from their business bank account and will need to look for an alternative solution. Luckily NorthOne has just the product these customers need. From the start, NorthOne has existed to help any and all businesses take control of their finances no matter how small their company might be. In this article, we’ll break down why NorthOne is the perfect choice for ex-Brex customers looking for a banking partner that can help them thrive.
What is the Brex Business Account?
Brex business accounts act as an alternative to a traditional business bank account. Users can send and receive payments via ACH, deposit checks, and manage overall spending. Brex seemingly set out to support small to medium-sized businesses but over the past five years its business model has shifted away from serving traditional small business owners, to larger more well-funded enterprises. Recently they made the decision to remove their small business offering entirely to focus on their bigger more directly profitable customers.
To stay on as a Brex customer a business must fulfill at least one of the following criteria:
Received an equity investment of any amount (accelerator, angel, VC, or web3 token).
More than $1 million a year in revenue.
More than 50 employees.
More than $500,000 in cash.
Tech startups who are on a path to meeting the criteria above and are referred by an existing customer or partner.
All customers that don’t fit into these categories will no longer be able to access their account as of August 15th. If that’s you, don’t panic, there are plenty of other digital banks that would be honored to have you as a customer, including NorthOne which Brex customers can try for 3 months free!
Why is Brex closing Small Business Accounts?
Recently many tech companies have been feeling the pressure of changing marketing and the looming recession. As venture capitalists battle down the hatches and tighten their purse strings tech companies have had to make hard decisions. We’ve seen layoffs and reduced offerings, but this move by Brex came as a bit of a shock to many.
While Brex originally set out to build a business checking account that supported small, traditional businesses, the last few years have seen them putting more focus on tools and software solutions for bigger, more well-funded companies.
According to Brex’s Co-founder and CEO Henrique Dubugras, the company decided it could no longer fulfill the needs of both these customer groups, so the decision was made to drop all small businesses in favor of those businesses that are much more developed and well-funded.
Obviously, this decision was controversial and many were angry that Brex would no longer provide services to the customers that had supported them from the start. Regardless, what’s done is done and Brex won’t go back now so small businesses that were using a Brex Business Account will need to look for a new solution. That’s where NorthOne comes in. We specifically built NorthOne for the businesses Brex will now be turning away. We’re on a mission to make managing business finances simple, so everyone has the opportunity to build and grow a business.
Can You Still Use Your Brex Card?
If you’re an existing Brex customer that is part of the demographic they are no longer serving, you will have received a text message letting you know that your account will be closed after August 15th. After this date, you will no longer be able to use any of the company’s products and services which includes your Brex card. If you’re going to lose your Brex account, it’s time to make the move to a business banking platform that can support you and your business.
What is the Best Alternative to the Brex Bank Account?
NorthOne like Brex acts as a replacement for a traditional business bank account. Unlike Brex, we’re dedicated to helping all businesses, no matter how small, by providing them with the support they need to better manage their finances. We built NorthOne by speaking to thousands of business owners across the country about their key pain points when it comes to finances. We’ve used this information to build a product that doesn’t just act as a replacement business account but actually solves problems for business owners and makes running their business easier.
With your NorthOne account you can:
- Make fast and easy ACH and wire payments
- Make mobile check deposits
- Load and withdraw cash from locations nationwide
- Connect to the apps you use for business like Quickbooks and Paypal
- Set up Envelopes to organize your money and plan for the future
- Use your NorthOne business card to make payments in person and online
And that’s just the start!
NorthOne is trusted by 320,000+ American businesses. Our customers know we’ve got their back. No matter what happens, our mission; to remove the pain of financial management for ALL businesses in America, will always come first. No matter how small your company, we believe everyone should have the support they need to build and grow a business.
We know this decision by Brex has been a major inconvenience for small business owners that are already dealing with so much. To make things easier, we’re giving all ex-Brex customers the chance to try NorthOne free for your first 3 months.
You can apply for a NorthOne account in as little as 3 minutes!