Business has evolved, and even small, local businesses are now able to sell and cater to clients from around the world. Businesses have been able to flourish thanks to the Internet and the interconnectivity that we have in 2018.
And one of the basic changes that we’re seeing is the way that contracts and documents are signed.
Once a process that was arduous, signing documents has been the cornerstone of contracts for centuries. Paperwork would have to be shipped or faxed, then scanned and sent back to businesses, delaying deals and contract signings in the process.
Why Electronic Signatures Make Sense
Electronic signatures make sense because the business world does everything online, from closing deals to collaborating with business partners. It's a world that allows businesses to flourish no matter where they’re located.
A major concern when electronic signatures first came about was that they wouldn’t have the same legal standing as a normal signature. This has proven to be false. In the United States, the has made electronic signatures legally binding.
Many other countries have similar legislation in place that validates the legality of electronic signatures.
Why are businesses choosing electronic signatures going into 2019?
1. Security is Higher
Electronic signatures are very secure, and they’re often safer than traditional paper documents. Every year, businesses are victims of theft, and this often occurs when documents are misplaced or thrown into the trash.
Unless paper contracts are shredded, there’s a chance that someone can access the person’s private information and even steal a customer’s identity.
When using electronic signatures, not only is it easier to store and backup contracts, but you can also encrypt all of the documents containing signatures. When encryption is used, the risk of any private information leaking is far lower.
But the security is even better than just these points.
Electronic signatures also contain:
- Date of signature
- Who signed the document
- Where the document was signed
Compared to a paper document, electronic documents can be more enforceable and secure.
2. Lower Overhead
Paperwork, over time, becomes very expensive. You have to pay for:
And time is where most of the overhead comes from. When workers have to spend an immense amount of time on preparing and sending documents, it will lead to a business spending more money.
When you request signatures digitally, you’ll be saving on all of these expenses.
Over time, you’ll be saving on:
- Storage costs
- Shredding costs
Data storage has become so cheap that it’s often cheaper to store documents on a backup service than it is to store physical documents in a physical location.
3. Faster Signing and Turnaround Times
When sending paperwork to be signed overseas or even locally, delays can occur. A bad snowstorm may cause documents to arrive days or even weeks late in some cases. In the business world where everything needs to be completed yesterday, turnaround time is of the utmost importance.
There are no long delays or potential hiccups when sending a request for an electronic signature.
Everyone that needs to sign the document can do so in seconds, and businesses are able to offer versatility as a result. Time-sensitive situations are no longer an issue because documents are signed and sent back in seconds.
This means enforcing a contract can be much faster.
If time-sensitive products or services need to be rendered, it only makes sense to use electronic signatures over normal signatures.
Simple and intuitive, the rise of electronic signatures has changed the way that people do business. We're seeing more and more businesses offering electronic signing options, and this trend is expected to remain strong in 2019. Convenient and secure, it makes sense for businesses to always do what’s best for their customers.
Since security has become such a major concern, especially with paper documentation, electronic signatures make sense. If properly encrypted, the documents will be safe even from hackers due to the high level of encryption that’s available. Business theft and identity theft issues are virtually eliminated thanks to the flexibility that digital signatures offer compared to their paper counterparts.