A merchant business is set up by a retailer who purchases goods in bulk, i.e. wholesale purchases, from all sources and resell them after keeping a considerable profit.
A merchant requires considerable working capital to invest in assets and to pay various suppliers in advance. To boost that cash flow or to clear pending dues, a retailer can avail merchant funding. This financing helps in increasing the working capital without the need for any collateral.

Merchant businesses utilise their merchant’s account and retrieves generated revenue from customers through credit cards and debit cards.

Following are the steps that should be followed to open a merchant account for a particular business.

1- Choose a particular financial institution for collaboration.
2- Decide the payment model, whether it will be recurring billing or a one-time payment.
3- Evaluate the turnover as the bank establishes its rate base on the existing assets of the business.
4- Create your original website.
5- Provide all authentic documents.
6- Submit the application form after filling up all the necessary details.

To open a merchant account for a business, you will be required to submit certain documents regarding available assets and turnover. There are several financial institutions that offer business loans to retailers and merchant businesses at affordable interest rates to help maintain the necessary working capital and stock inventory.