Rho vs. Brex Credit Card Review 2024

The top reason most businesses choose a credit card is based on the type of rewards it offers. Rho and Brex couldn't offer two more different reward structures, so which one you choose will depend on your business needs.

Rho has a cash back reward structure that is based on the frequency at which your business pays off the balance. Below is the current system Rho uses for credit card rewards:

• No cash back if balance is paid off every 60 days
• 0.75% cash back for balances paid off every 45 days
• 1.50% cash back for balances paid off every 30 days
• 1.75% cash back for balances paid off daily

The flexible structure allows businesses with varying cash flows to choose a structure based on what they can pay at the moment. The only downside is the terms can only be adjusted up to four times each year. Also, international purchases will not be included in the cash back reward system.

Brex uses a miles-based reward program that accrues based on the types of purchases your business makes. Where the award program becomes confusing is how Brex differentiates how rewards are earned.

There are two different reward systems, the baseline rates, and the Exclusive Rewards Program. In order to qualify for the Exclusive Rewards Program, your business needs to apply. Brex will use the bank information you provided upon sign-up and third-party data to determine eligibility.

Below is the current Exclusive reward structure for the Brex card:

• One point per dollar on all purchases that don't match the listed categories
• Two points per dollar on all recurring software purchases
• Three points per dollar on eligible Apple purchases
• Four points per dollar on travel purchases using the Brex portal
• Seven points per dollar for rideshares and taxis

If your business doesn't qualify for the Exclusive Rewards Program, you'll receive one point per dollar on all purchases.

Rho and Brex also have very different screening methods to determine if your business is eligible for a card. Rho has a straightforward process with few requirements, while Brex has a more nuanced approval process.

While both companies target medium to large businesses, Rho makes it much easier to get approved as long as you meet the requirements. Your business must have a minimum account balance of $50,000 in order to apply. You must also be at least 18 years of age, and the company must be incorporated in the US. If you don't have a $50,000 account balance, your business can still apply if you spend at least $5,000 a month on the corporate card. International companies must maintain a minimum balance of $100,000. Businesses in high-risk industries of any kind are more likely to be declined like betting, pharmacies, adult dating, pawnshops, and more.

Brex has a more complicated approval process that involves two different accounts based on the frequency of payments. Your business can either choose to pay off the balance daily or pay off the balance once a month. Brex is a charge card so you won't be able to carry a balance to the next month.

Brex made a statement in June 2022 stating they would no longer market to startups without capital investors. What this means is your company must already have a significant amount of financial momentum before applying.

Brex approves businesses based on their cash balance, spending patterns, and investors. There is no personal guarantee required, but your business does need to maintain a minimum balance of $50,000 if you have investors. If you don't have investors, you'll have to have $100,000 in your account at all times. The requirements make Brex ideal for startups who have little to no credit history but have a high potential for growth.

You never know when your business needs to make a large purchase. SaaS tools, affiliate partnerships, and other factors can contribute to large expenses that need to be paid off immediately. This is where credit limits come in handy.

Rho is better for companies whose cash flow may vary significantly throughout a month or year. The banking option uses non-traditional data points to determine your credit limits like cash on hand, growth metrics, predictive analytics, and annual revenue.

Your current business cash flow won't be taken into account, so your credit limit should remain stable and consistent throughout the year. The unique data points Rho uses should also offer higher credit limits compared to other banking institutions.

Brex, on the other hand, has a credit limit that changes alongside your current cash flow. The limit is dynamic instead of static, so it varies depending on how much cash flow you have and your typical spending patterns.

Brex updates throughout the month as your business makes purchases. If you deplete your cash flow for the month, your credit limit will reflect the decline and become lower.

It’s important to note that dynamic credit limits only apply to accounts that have qualified for monthly payments rather than daily payments. 

As the name implies, daily payments only allow spending up to the dollar amount in your Brex account. It works similarly to a debit card, so if you want to spend more, you'll need to transfer funds from other accounts.

In traditional business banking, a personal guarantee is often required in order to get approved for a business credit card. This means the business owner is personally held liable for any debt the company incurs. If the balance can't be paid in full, personal assets are at risk of being seized. 

Fortunately, neither Rho nor Brex requires a personal guarantee. More traditional underwriting methods aren't used for the two banks. No hard pulls will show on your credit history, and in some cases, no Social Security number is required. 

Rho and Brex are perfect options for entrepreneurs who want to protect their personal liability while still receiving the benefits of a reward credit card.

Both Rho and Brex have made public statements indicating they have little interest in small-sized businesses. To further indicate the sentiment, both banks include a very high monthly minimum balance that must be kept in the account at all times. 

Startups will need a minimum of $50,000 to open and keep a bank account with Rho or Brex. Rho does give companies who can't meet this requirement an option of spending at least $5,000 monthly to obtain the corporate card.

Normally, Brex prefers startups that already have professional investors because it signifies a strong capital reserve. However, if your business doesn't already have investors, it will need to secure a minimum of $100,000 in the account at all times. 

To further define their target customer, Brex even requires self-funded ecommerce companies to meet all the minimum requirements above while also having an additional $1 million in a US bank account. 

Most of these requirements from Brex pertain to the monthly payment option. Any companies that fail to meet the standards may still be approved for the daily payment account.

If the minimum account balances give any indication, Rho and Brex both target medium to large-sized businesses for their corporate cards. The large minimum balances required are not realistic for small businesses or startups. 

In terms of specific industries, Rho has a more diverse customer base, while Brex focuses on ecommerce and tech companies. Rho doesn't have any strict guidelines for the types of companies they'll work with. The bank is willing to give almost any business a chance as long as it can meet the minimum requirements. Of course, businesses in high-risk industries will always be under higher scrutiny. Cannabis, gambling, and adult dating companies face a higher likelihood of being denied for either Rho or Brex.

Both companies have additional features more applicable to larger businesses, like supervised spending, unlimited card assignments, real-time expense tracking, and automated bill payments.

The Rho corporate card is more suitable for businesses that have high-growth potential but are still finding their path forward. 

The application process and requirements involved are straightforward, so any business can feel confident applying. Businesses that experience large fluctuations in cash flow won't have their credit limit affected and can still receive rewards, even at a lower value. 

No personal guarantee is required, so your personal liability has minimum risk and additional features offered by Rho make it great for medium to large-sized businesses. 

Features and Rewards:

• Up to 1.75% cash back on all purchases
• Sign-up bonus
• No personal guarantee required
• Quarterly credit terms available
• Higher credit limits
• Cash back rewards

Fees and Interest Rates:

• No annual fee
• 0.6% FX fees for most currencies
• $30 wire recall fee

Companies that have already shown early success and have a strong capital reserve will find the Brex corporate card to be perfect for their business expenses. 

The application process requires the business to prove certain benchmarks like personal investors and a high minimum account balance. Credit limits will fluctuate based on cash flow, so companies need a strong reserve of resources to maintain high limits. 

However, companies that do meet the strict requirements will enjoy a more robust mile-based reward structure alongside no personal guarantee. 

Features and Rewards:

• Credit limit scales with your cashflow
• Signup bonus
• No personal guarantee required
• High credit limits
• Transferable mile-based rewards 
• Daily or monthly card payment offerings

Fees and Interest Rates:

• $0 annual fee

Both Rho and Brex offer impressive corporate cards for medium to large-sized businesses. No personal guarantee is required for either, and they both have convenient features that help staff with financial management. Your company will, however, need a high monthly minimum balance to qualify, and credit limits may be affected by cash flow. 

All in all, Rho is best for companies that have the potential for growth but need flexibility in repayment terms. Brex is the better option for companies that already have large momentum so they can take advantage of better rewards.