[eins1234]

If I had to guess, I'd say the biggest contributor to poor unit economics for small business vs startups is credit losses.

Startups usually have tons of cash in the bank to underwrite against, which made them actually very safe to lend to, unintuitively enough (that underwriting model was Brex's original innovation, remember?).

Whereas small businesses usually don't, but still need a reasonable credit limit to spend with, so they end up having to underwrite using traditional data sources like credit scores and whatnot, and they probably haven't been able to develop a sophisticated enough model quickly enough to curb losses, and the recession certainly isn't going to make things any easier.

So, anticipating further accelerated credit losses down the line, this is them throwing in the towel on that whole experiment.

[aaaaaaaaata]

> Startups usually have tons of cash in the bank to underwrite against

What city do you live in? Can we be friends?