Updated 2026-05-19

Timecard approval

Client approval of worker hours, often required before staffing invoices are collectible.

Why it matters

Client approval of timecards is treated as confirmation that the hours worked are accepted and the invoice amount is due. An unapproved timecard means the client has not yet confirmed the obligation, making the invoice contingent and typically ineligible for funding. Factors for staffing companies require timecard approval as a condition of invoice eligibility. If timecards are pending approval at submission, the factor may hold the invoice until approval is confirmed. Electronic timecard systems provide an auditable approval record that simplifies the verification process and can reduce the time to funding.

How it appears in contracts

Factoring agreements for staffing companies specify timecard approval requirements in the Eligible Receivables definition. Common requirements include: timecards must be approved by the client in a documentable form such as an electronic system confirmation or email; and approval must occur before or at the time of invoice submission. Some agreements permit a grace period where invoices may be submitted pending approval if approval is received within a defined window such as three business days. Disputed or rejected timecards require the seller to notify the factor and may trigger a chargeback or reserve hold on the affected invoice.

Related terms

• Recourse
• Chargeback
• Notice of assignment
• UCC-1