Merchant onboarding

A merchant is the party whose receivables Tilta finances. Whether you need to onboard merchants at all depends on who that party is. If you sell on your own account, your own business is the merchant and this page does not apply – skip ahead to Buyer onboarding. If the receivables belong to third parties, such as the sellers and suppliers trading through your platform, Tilta needs to vet each of them first. Settle this question before you write any integration code.

Merchant of record: Do you need to onboard merchants?

The merchant of record model determines the invoice flow on your platform and whether full merchant onboarding is required.

Model	Invoice flow	Merchant onboarding required?
You sell on your own account	One invoice: you → buyer directly	❌ No
You are the merchant of record	Two invoices: merchant → you, then you → buyer	❌ No
You are not the merchant of record	One invoice: merchant → buyer directly	✅ Yes

You sell on your own account means the goods or services are yours and the receivable is yours. Tilta finances the invoice you issue to the buyer, and there is no third party on the supply side to vet. You are the merchant of record means you legally intermediate every transaction. You purchase goods or services from the merchant and resell them to the buyer. Tilta finances the invoice you issue to the buyer, and you settle with the merchant separately. You are the sole counterparty Tilta deals with on the supply side, so no individual merchant onboarding is required. You are not the merchant of record means you act as a pure broker or marketplace. The merchant and buyer transact directly, and Tilta finances a single merchant↔buyer invoice. In this case, Tilta needs to vet and onboard each merchant individually before their receivables can be financed.

If you are unsure which model applies to your platform, consult your Tilta integration manager. The answer has significant legal and operational implications for your integration architecture.

Required information by entity type

When merchant onboarding is required, the information you need to collect depends on the merchant’s legal form. Tilta supports two merchant types: Individual persons (sole traders, freelancers) and Legal Entities (companies, partnerships).

Individual person
Legal entity

Individual persons include sole traders, freelancers, and any business owner who operates without a separate legal entity. Collect the following information before creating the merchant via API:

Field	Description
Full legal name	First name and last name exactly as on official ID
Residential address	Street, city, postcode, and country
Date of birth	DD/MM/YYYY format
Tax identification number	National tax ID (e.g., Steueridentifikationsnummer in Germany)

The name and date of birth must exactly match the merchant’s government-issued ID. Mismatches are the most common cause of onboarding delays for individual persons.

Legal Entities include limited companies, GmbHs, AGs, BVs, and other registered corporate forms. The information set is more extensive because Tilta must verify both the entity itself and its controlling persons.Entity-Level Information

Field	Description
Registered business name	Full legal name as registered with the commercial registry
Registered address	Officially registered office address
Date of incorporation	The date the entity was legally formed
Tax identification number	Corporate tax ID or VAT number

Ultimate beneficial owners (UBOs)You must provide details for every person who directly or indirectly owns more than 25% of the entity’s shares or voting rights.

Field	Description
Full name	First and last name
Shareholding percentage	Exact ownership percentage
Date of birth	DD/MM/YYYY
Personal address	Residential address (not business address)
Valid ID scan	Passport or national ID – must be current and unobscured

Legal representativesTilta requires at least one legal representative for merchants with individual signing authority. For collective representation (where multiple signatories must act together), you must provide details for all required signatories.

Field	Description
Full name	As on official ID
Representation type	Individual or collective
Contact details	Email and phone number

If the merchant has collective representation rights (e.g., two managing directors must sign together), you must submit all required signatories. Submitting only one will block the onboarding approval.

Implementation options

You can onboard merchants using the REST API or by redirecting them to Tilta’s hosted onboarding form. The right choice depends on how much control you want over the user experience.

Option 1: Hosted redirect

The simplest path to production. Redirect the merchant to Tilta’s hosted web form, where they complete the onboarding process directly. Tilta handles all data collection, validation, and document upload – no custom UI required on your end. Use the Hosted Redirect when:

You want the fastest path to live onboarding
Your merchant base is comfortable being redirected to a third-party form
You do not need deep customisation of the onboarding UI

Option 2: REST API

Build a fully custom onboarding flow within your own platform interface. You collect data from the merchant, then submit it programmatically to Tilta’s API. This gives you full control over branding, UX, and data validation before submission. Use the API when:

You want to keep merchants entirely within your platform’s UI
You already collect most required merchant data during your own signup flow
You need to integrate merchant onboarding into a broader multi-step workflow

API workflow

The following steps describe the REST API onboarding process.

Create the merchant

Submit the merchant’s basic information to create their record in Tilta. Use the POST /v1/merchants endpoint with the entity details described above.

POST /v1/merchants
Authorization: Bearer YOUR_API_KEY
Content-Type: application/json

{
  "external_id": "merchant_abc123",
  "legal_name": "Acme Supplies GmbH",
  "legal_form": "LIMITED_COMPANY",
  "trading_name": "Acme Supplies",
  "incorporated_at": 1426982400,
  "business_address": {
    "street": "Unter den Linden",
    "house": "1",
    "postcode": "10117",
    "city": "Berlin",
    "country": "DE"
  },
  "contact_emails": ["finance@acme-supplies.de"],
  "business_identifiers": [
    {
      "type": "VAT_ID",
      "value": "DE123456789",
      "country": "DE"
    }
  ]
}

external_id, legal_name, legal_form, business_address, and contact_emails are required. Within the address, postcode, city, and country are required.

Add representatives and owners

Legal representatives and ultimate beneficial owners are separate records, not fields on the merchant. Create each individual with Create a person, then associate them using Add representative and Add owner.

Tilta reviews and approves

Once all required information is submitted, Tilta’s compliance team reviews the merchant application.

Poll GET /v1/merchants/{external_id} to check the current status. A merchant that has completed onboarding reaches ENROLLED; INACTIVE and EXPIRED indicate that they cannot currently be financed.

Merchant is ready for financing

With an ACTIVE status, the merchant’s receivables can now be financed through Tilta. You can proceed to create orders and invoices referencing this merchant’s external_id.

Approval timeline

Tilta targets a merchant approval decision within one business day of receiving a complete application. Incomplete applications – missing UBO documents, mismatched names, or absent legal representatives – will delay the review. Ensure all fields are populated and all ID scans are valid before submitting.

Tilta may request additional documentation for merchants in higher-risk industries or jurisdictions. Your integration manager will communicate these requirements on a case-by-case basis.

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Merchant onboarding

Merchant of record: Do you need to onboard merchants?

Required information by entity type

Implementation options

Option 1: Hosted redirect

Option 2: REST API

API workflow

Approval timeline

​Merchant of record: Do you need to onboard merchants?

​Required information by entity type

​Implementation options

​Option 1: Hosted redirect

​Option 2: REST API

​API workflow

​Approval timeline

Merchant of record: Do you need to onboard merchants?

Required information by entity type

Implementation options

Option 1: Hosted redirect

Option 2: REST API

API workflow

Approval timeline