What is the difference between a merchant cash advance and revenue-based financing?

Both provide upfront capital repaid as a percentage of revenue, but MCAs are technically an advance against future credit card sales (purchased at a discount), while RBF is structured as a loan repaid from total revenue. MCAs are often more expensive (factor rates 1.2-1.5) and less regulated. True RBF products tend to be cleaner structurally, with better terms and more transparent total cost.