Flex, a financial operating system, released its own version of Visa Infinite Business Credit Card.
Flex is the first U.S. FinTech in its category to introduce a Visa Infinite Business-branded credit card, according to a news release issued Monday, July 28.
At a press brief, stating that Visa Infinite Business is the company’s premium small business card and is usually only available to select corporate programs. Flex is providing the small business sector with these top advantages with this partnership. Access to upscale travel, individualized concierge services, and comprehensive purchase protections will be provided to cardholders, who will also benefit from Flex’s larger platform for corporate banking, cost management, and AI-powered payment automation.
This new product, according to the release, takes the place of Flex’s business Mastercard. Current Visa Infinite Business cardholders will be transferred to the new Visa infinite Business platform.
Zaid Rahman, the founder and CEO of Flex, stated that the card “doesn’t just extend flexible working capital, it elevates the entire financial experience for business owners, from how they spend to how they travel, protect purchases, and build long-term value.”
Flex, which changed its name from Flexbase in 2023, specializes in providing small businesses with cash flow and credit solutions. The platform, which links to bank accounts, payroll providers, and accounting systems, is integrated with the card. The company claims that this makes it possible to evaluate a company’s financial health in real time and to set lending limits and terms based on more comprehensive data inputs.
Rahman stated, “Our underwriting considers a company’s overall health, not just one bank statement or credit score.” “This enables us to grant longer floats and approve more businesses.”
According to a PYMNTS, a press media firm article earlier this month, the new card’s launch coincides with millions of American SMBs considering credit cards less as a “standard payment tool and more of a financial lifeline.”
These companies are depending on personal and business credit cards to finance their operations and settle their debts as they cope with variable revenue, cash flow issues, and “a banking system that can treat them as second-tier borrowers,” the report continued.
54% of SMBs fund their operations with both personal and business credit cards, which poses risks, according to research by PYMNTS Intelligence. Credit scores and long-term financial stability can be jeopardized by revolving debt, especially on personal credit cards. Compared to much fewer older enterprises, almost half of those assessed for the study that had been in operation for less than five years reported carrying balances beyond many months.
Credit cards are still the most readily available, seamless, and easily simple way for many SMBs to obtain working capital, according to PYMNTS. However, there are drawbacks to the flexibility, including increased interest rates, disjointed management, and the personal liability that results from an owner using their personal credit for business purposes.
SMBs were also dissatisfied with their card options, according to the study. For instance, 31% of companies stated that if their cards offered benefits specific to their sector, they would use them more frequently.
The debut comes after fintech companies that provide smaller businesses with alternative finance alternatives have become more active. In recent years, other platforms like Brex and Ramp have introduced capital products and cards, but none of them have partnered with Visa at the Infinite Business tier.
“A lot of small businesses require better, more flexible financial products, and they are an important part of the economy,” stated David Simon, senior vice president of Visa Commercial Solutions. “We are pleased to assist Flex in reaching this significant market segment, as they offer speed and innovation.”
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