An electronic form of data that is logically linked with other data in electronic form and used by the signatory for endorsement is called e-signature.
It is a digital version of a wet-ink signature and provides the same legal standing as the traditional handwritten signature.
For decades, the wet-ink signature has been used by companies to sign business papers, which cannot keep up with the fast-paced electronic world. In those days, doing paperwork for a business was a very long and tedious process.
Several stages like printing, signing, scanning, and sending via email, fax or courier are involved. It requires a long process and time to get the required authentication from multiple recipients on certain business agreements, and this can cause a tremendous delay in the process of business operations.
In performing business transactions, it is vital that the process is fast and business documents are safe, secure and well-protected. Loss or theft of any essential business documents can create huge damage to business proceedings. The e-signature provides high security for business documents and allow the organization to carry out its business operations efficiently within a very short time.
An e-signature must meet the following criteria to provide the same legal agreement as an ink signature.
- The signatory has intents to verify his or her identity.
- The signatory has consented to do business electronically.
- The system used in capturing the e-signature must be able to verify the process by which the signature was created.
- The record of the e-signature is kept for the required amount of time, so it can be referenced by all interested parties.
Before you consider using an electronic signature, you may need to be familiar with its importance. Here are some of the importance of e-signature to small scale businesses:
High level of security
Not only do electronic signature contains a signature, but they also contain information on who signed the document, when it was signed, and where they signed it. Therefore, it is safer and more secure than traditional paper documents.
The setting enables business owners to keep track of documents security and have updates on signature status. If there are omitted signatures in the document, then a reminder email can be sent to the recipients who are taking too long to sign the document.
In the ink and paper signing process, there were no proper security measures for business document transportation. This has in many cases resulted in a loss of confidential business data and cause a delay in the business process.
Small scale business now deals with different suppliers, customers, and partners in various places around the globe. E-signature saves the business owners from mailing, printing, and scanning in their business dealings.
Businesses can experience a boom and a complete turnaround with the convenience of electronic signatures. Instead of sending documents from party to party for their signatures which consume a lot of time. It can be done by all parties within a few seconds which is a great asset in time-sensitive situations. As a result, the business will flourish in the face of serious competition.
Due to the complications of the traditional ink-paper process, electronic signature has been proven to be more cost-effective than the traditional pen and paper method. Costs of papers, postages and mailing supplies are saved when e-signature is adopted. And now that you can get free e-signature solutions, it makes it even more cost-effective.
Sign from Anywhere in the World
With just an internet connection, the electronic signature app allows the business owners to sign business documents from anywhere in the world including the remote areas. This has tremendously enhanced business productivity and efficiency.
Saves Company Time
Signing on paper documents is a long and tedious process. The documents must be printed, signed, scanned and send to recipients for signatures. The process will waste a lot of company time if any of those signers are on leave. It will delay or halt the entire business process.
Electronic signature, on the other hand, will save the company’s valuable time. The time saved can be used to set better business strategies, focus more on core business and generate more revenue for the company.
Simple and Very Easy To Understand
E-signature has loads of benefits. But, one of the biggest benefit is the simplicity of its usage. With an electronic signature system, you can upload a document, declare the signers and the recipients, a secure link will be delivered to the recipient. When the recipient signs the document, then the process is complete.
Signatures still play a significant role in today’s competitive modern business environment to quickly close a business deal.
However, getting the signatures of third parties or clients and customers has been proven to be a very serious challenge for businesses as it is very complicated and time-consuming. Ditching the traditional paper-ink signing method and adopting an e-signature is a solution to this business challenge.