Moneytree Business Loans Review, Plus Top Alternatives

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Moneytree Business Loans, Summarized

Growing up, you probably heard the saying “Money doesn’t grow on trees.” Now, as you start off your search for business funding, you might feel like money does grow on trees—with so many easy-to-access business capital options out there, it’s easy to forget that old adage. Generally speaking, though, the easier business financing is to score, the harder it will be to pay back.

One such source of business capital—fittingly named Moneytree—offers short-term loans with no minimum business credentials. But are their quick and expensive repayment terms worth the easy access to capital they boast?

We’ve written a review of Moneytree business loans offerings so that you can decide for yourself. Here are all the pertinent details on Moneytree business loans, and how this funding option compares to other three short-term funding options:

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Are Moneytree Business Loans an Option for You?

Be sure to note from the get-go: Money tree business loans are only available to businesses in California, Idaho, Nevada, and Washington. So, if you’re running a business that’s not based in any of those four states, you’ll need to skip ahead to our three picks for the best alternatives to Moneytree business loans.

Even within those four states, too, Moneytree business loans will vary in their amounts and terms. As such, though Moneytree business loans might seem pretty uniform, be sure that you’re looking at the Moneytree business loan details that apply to your specific state.

Moneytree Business Loans Details

Now that we’ve clarified Moneytree business loans’ limited reach, let’s begin to dive into the details on what Moneytree business loans would look like for the business owners in California, Idaho, Nevada, and Washington. Though Moneytree doesn’t vary business loan terms based on creditworthiness, their business loans will work differently from California businesses than they will for Idaho, Nevada, and Washington.

Using the loan information that the lender provides on their website, along with our short-term loan calculator, we’ve compiled all the information you need to know on Moneytree business loans for your state:

    Moneytree Business Loans for Idaho, Nevada, and Washington

    For business owners in Idaho, Nevada, and Washington, Moneytree business loans will follow a format of $1,000 in principal loan amount with $175 worth of fees and interest if you repay your Moneytree business loan in 30 days. The total cost of capital for these Moneytree business loans will be $175, which means the short-term loan will carry a 1.175 factor rate.

    Using a short-term loan calculator, you’ll be able to see that the cost of these states’ Moneytree business loans, calculated as an interest rate, will be 17.50%. Not too bad, right?

    Well, because these terms are expressed with the repayment term of just 30 days, then the total cost of your loan will likely be more than $175 if you take longer than a month to pay your business loan back.

    And even if you do manage to pay your loan back in 30 days, that will mean your debt would carry an APR of 382.51% due to the quick repayment.

    Moneytree Business Loan Option for California

    Alternatively, if you’re running a business in California, then Moneytree business loans will carry different terms for you than they would for Idaho-, Nevada-, and Washington-based business owners. California businesses will be able to access slightly larger Moneytree business loans of $2,500. These loans will come with fees and interest of $487.50 if you’re able to pay back your debt in 30 days.

    Calculated as an interest rate, the cost of these loans will be 19.50% interest. However, calculated as an APR, the cost of California Moneytree business loans—repaid in 30 days—will be a whopping 424.06% because of the quick turnaround. As a reminder, Moneytree business loans don’t necessarily have to be repaid in 30 days, but they will accumulate more interest  than $487.50 if you take longer to repay.

Applying for Moneytree Business Loans

If you’re eligible for Moneytree business loans, and you like what you see after reading the details on your state’s loan terms, then it’s time to consider the steps you’ll need to take to apply.

To apply for business loans from Moneytree, you’ll need to fill out their quick online application and gather the following documentation:

  • A complete version of your state’s full Moneytree business loan application
  • Proof of business like a business license, a trade license, or a tax permit
  • Three most recent bank statements
  • A voided business check

Why You Should Consider Moneytree Business Loan Alternatives

Even if you are eligible for and interested in Moneytree business loans, we strongly recommend you look into other business loan options. Looking into Moneytree business loan alternatives will help you gather valuable context on your funding options—and might even allow you to find a more affordable option.

There are a host of reasons to look into others sources of funding, but there are three prominent downsides to Moneytree business loans that should make you hesitate in taking one on:

    Limited Scope

    First and foremost, you’ll need to look for a Moneytree business loan alternative if you’re not based in one of the four states where they’re available. The limited scope of Moneytree business loans means that the vast majority of business owners won’t even be able to apply for this business capital, and that’s a serious downside to this product. However, there are many alternatives to Moneytree business loans that work nationally—and offer much more affordable terms. We highlight three of our favorites below.

    Quick Repayment Terms

    The lightning-fast repayment terms on Moneytree business loans has tons of ramifications that are less than ideal. Most simply, repaying a loan a mere 30 days after getting it just doesn’t make sense for most businesses—it’s too difficult to see returns from investing in your business within a month.

    Additionally, such short repayment terms mean that you’ll be expected to make daily payments toward your debt. And because APR is such a time-based measurement of cost, know that Moneytree business loans have sky-high APRs.

    All in all, the quick repayment that Moneytree loans require will entail frequent payments and high APRs that will make it very hard to pay your debt back according to schedule.

    Little Available Information

    Finally, one last thing to look out for with Moneytree business loans is the lack of public information available on them. Though Moneytree provides examples of their business loans on their site, they don’t provide exact rate minimums or maximums or fees that they might charge you during the funding process.

    Additionally, there aren’t many customer reviews on Moneytree business loans available. This lack of information, along with the less-than-savory reputation other payday loan institutions have, should make you tread carefully if you decide to move forward with Moneytree.

Top 2 Alternatives to Moneytree Business Loans

Many business owners who don’t live in the four states that Moneytree business loans serve are likely wondering where to take their search for business funding. And, as we’ve just gone over, Moneytree business loans aren’t necessarily the most affordable options on the market.

Whether Moneytree isn’t an option due to your place of business, or you want to shop around, take a look at the top three Moneytree business loan alternatives to see if any address your business needs better than Moneytree can:

Kabbage Business Lines of Credit

If you’re looking for less-frequent payments than the daily payments that Moneytree business loans will likely require of you, then Kabbage should be your go-to alternative. Kabbage provide short-term lines of credit of up to $250,000 from which borrowers will be able to withdraw as needed up to their limit. And once you withdraw from your Kabbage line, you’ll repay your debt on a monthly basis for a repayment term of six months to a year.

Fundbox Invoice Financing

If you’re looking for easy-to-access financing that’s available nationwide, then Fundbox invoice financing is a top alternative to Moneytree business loans. If you’re a B2B business that invoices its customers—and you’ve got at least six months in business—then you’ll be eligible to access an accounts receivable line of credit from Fundbox.

Fundbox offers funding of up to $100,000 and can fund you in a matter of hours thanks to their highly automated processes. Plus, once you access funding from Fundbox based on your business’s outstanding invoices, you’ll have three to six months to repay your debt.

Apply for Moneytree Business Loan Alternatives

Our Verdict on Moneytree Business Loans

Now that you’ve made it through our review of Moneytree business loans, you’ve likely gathered what our verdict on this lender is—with a limited scope, quick repayment terms, and little public information, Moneytree business loans are hard to endorse. That said, if you’re based in California, Idaho, Nevada, or Washington, and you’re looking for funding along the lines of what Moneytree offers, then they’re an option you can consider. Nonetheless, we encourage you to look into alternatives to Moneytree business loans that could very likely offer you more affordable and transparent funding.

Maddie Shepherd

Maddie Shepherd is a former Fundera senior staff writer and current contributing writer for Fundera. 

Maddie has an extensive knowledge of business credit cards, accounting tools, and merchant services, but specializes in small business financing advice. She has reviewed and analyzed dozens of financial tools and providers, helping business owners make better financial decisions. 

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