If you run a small- to medium-sized business (SMB) that relies on Brex for your business banking needs, you may have received an unpleasant notice in your inbox in June 2022. That’s when the fintech giant announced that it plans to pull the rug out from under its SMB customers by permanently closing their accounts. Reporting by TechCrunch confirmed that the move will impact “tens of thousands” of SMBs, many of which are now scrambling to research Brex alternatives in the midst of a potential recession.
That is not a good look, especially for a fintech that once prided itself on serving this exact segment of the business banking market. SMB customers in need of a modern business banking solution will now be forced to look elsewhere. Fortunately for them, there are a number of compelling Brex alternatives that may offer even better services—especially for companies focused on growing internationally.
In this article, we’ll explain the basis for Brex’s decision to close long-time SMB accounts. Then, we’ll review why we think Levro stands atop the list of Brex alternatives for global businesses that need a fast and affordable way to send international and domestic payments.
According to an article that popped up in Brex’s support center around the time of the announcement, the company decided to close accounts after realizing that it “couldn’t successfully serve companies of all sizes at the same time.” It seems that Brex is retreating from SMBs so that it can focus more deliberately on providing a white-glove experience to fast-growing startups with professional investor backing.
Brex has provided a list of criteria for the startups it is willing to move forward with. SMBs that don’t meet the any of the following criteria will likely have their accounts closed:
This presumably leaves out many brick-and-mortar businesses, as well as startups with bootstrapped funding and/or startups in the pre-seed stage of growth. The bottom line is that any businesses that 1) need a modern banking solution and 2) don’t meet the above criteria will likely be forced to look elsewhere for alternatives.
Yes, customers that meet the above criteria can submit documentation proving as much to [email protected]. But if you don’t meet those criteria, you’ll likely find it difficult to appeal Brex’s decision to close your account.
In any case, it may be worth exploring Brex alternatives anyway. The fintech giant has clearly stated its plans to move away from a large segment of the market it used to serve. You may be better off with an alternative solution that better prioritizes your business’s specific needs and growth trajectory.
For businesses affected by the Brex account closures, accounts will remain active until August 15, 2022. Until then, customers will be able to continue transacting and using their accounts normally.
With that said, you’ll probably want to be proactive about transferring your Brex Cash account balances out to a different platform or external account. And if you have any reward points, you’ll want to redeem those in short order, as any points unused will be lost after the August 15 closure date.
Brex may be one of the biggest names in neobanking, but it’s not for everyone. (Given recent events, we think they’d agree on this point.)
If you’re looking for an option that better fits your startup in terms of size, scale, and features, consider Levro.
Levro is a multicurrency bank account built for businesses with globally distributed teams, suppliers, and customers.
Levro clients can receive, hold, and send more than 34 different currencies to 80+ countries from a single interface. This is part of what makes Levro a great option for global companies that do business within the United States as well as across international borders.
Levro is more than just a bank account. We also offer advanced features that matter to global businesses with tight margins and shipping timelines.
For example, our currency risk management tools help you manage your balance sheet against currency fluctuations that can eat away at your profits. By applying dollar-cost averaging principles to larger conversions (or making larger conversions when rates are near their 52-week lows), Levro can save you money that would otherwise be wasted or vulnerable to unfavorable exchange rates.
When Brex decided to close tens of thousands of SMB accounts, the message it sent those folks was pretty simple: We can no longer cater to your business needs, so good luck elsewhere.
Levro sees things differently. Our solutions engineering team understands that business banking requires bespoke tools and software, and we take pride in building agile, enterprise-ready solutions for our clients’ specific needs.
If you’re concerned about making the transition to a new banking solution, rest assured that we’ve built a phased, comprehensive transition plan that meets you where you are. Our dedicated onboarding team offers white-glove treatment for startups of all sizes. And once you’re aboard, you’ll continue to benefit from planning workshops in multi-currency treasury operations, strategic planning, and more.
We’re excited about the modern borderless banking solution we’ve built, and we think it offers the best combination of low costs, speed, and compliance for global startups.
Whether you’re looking for a Brex alternative or in the market for a banking solution that can scale with your global business, we encourage you to give Levro a look.