There is no doubt that the manual and traditional process of signing a document can be a time taking and hassle for businesses. Just imagine, you have to contract which needs to be signed, and you found that the person is not available. Besides, the third party wants to peruse the document at leisure before signing. All these processes take a massive amount of time.
Another option that you can consider is to fax the papers and inform the client about the same. Then you have to wait for the party to sign it and send it back that to you. However, if the party is busy in some works, this can take a few days, even some weeks. It will affect your business. That’s why most of the companies are now using electronic signatures.
In detail, an electronic signature enables one to sign the documents electronically. It saves a lot of time and makes the process faster. Here, in this article, we will discuss the use of electronic signatures. But before that, it will be useful to have detailed knowledge about the electronic signature, their benefits, and electronic signature example. So, let’s get started with it.
What is an electronic signature?
In short, the electronic signatures are the digital form of a traditional or manual signature. It enables users to enjoy a seamless and secure signing transaction. Besides, it offers better user authentication.
The documents which are signed digitally are tamper-proof and more secure. The signatures are recognized under different laws in different countries such as UETA and ESIGN Act in the US, eIDAS regulation in the European Union, and Information Technology Act, 2000 in India. These acts and regulations make the usage of electronic signatures legal.
However, remember that the electronic signatures are different from the digital signatures. A digital signature is a cryptographic mechanism that is generally used to do electronic signatures. For a clear idea, you can check the electronic signature example available online.
By using electronic signatures, you can:
- Save time: It’s time to stop chasing paper. Go digitally for a faster process. Within just a minute, you can now sign the document.
- Keep control: You will get to know who signed the documents, and also about the time.
- Stay mobile: No need to create cabinets in your office to store documents. You can now save your documents in the cloud and enjoy better access.
Talking about the primary objective of such a signature is to faster the process of document authentication with an identifiable mark. Even though they are not 100 percent secure, these signatures are used in different industries. You can use it in legal dealing, private affairs, business transaction and more. Now let’s have a look into some benefits of using electronic signatures.
The Benefits of Electronic Signatures
Before going deep into the use of electronic signatures, you need to understand some of the benefits of it. So, let’s have a look into this. Here are some notable ones:
1. It is intuitive and simple
One of the most significant benefits of using an electronic signature is that it is quite easy to use. You will find a lot of such online solutions. With an electronic signature software, you can easily upload your document, sign it, and send a highly secure link to the recipient. Then the recipient will sign the document, and the process will be over. Isn’t it quite easy! You can use the signatures by opening the link and with a few clicks. So, there is no need to waste your time doing manual signing.
2. Offers a maximum level of security
Some incidents prove that an electronic signature is entirely secure and safer than paper documents. It doesn’t just contain a signature; it also includes other information. For example, who signed the paper, the time and place of signing and more. You can keep track of the process. This is something not possible with traditional paper signatures.
3. Convenient
In this geographically extend the business world, a business deals with a lot of customers, partners, and suppliers. In such a case, if you go for manual signing and documentation, it can take a lot of time. But the electronic signatures facilitate remote authentication. Just a few clicks and you can sign the document. Forget about the printing and scanning of the documents.
4. Quick Turnaround
Another best thing about an electronic signature is that it offers a faster turnaround. Just think about the process of sending a document, print, sign, and scan the document. Then you need to send it to the third party. This process is very lengthy and takes time. But using electronic signatures, one can sign the document in just a few seconds. The use of electronic signatures in this modern business world opens up different opportunities. It works excellent in time-sensitive conditions.
5. Lower Cost
Electronic signatures are quite cost-effective than pen and paper signing method. The reason is that you will save money spent on paper, postage, and printing. All you need the best electronic signature software and working internet connection. Save your time as well as money and concentrate more on your business.
These are some of the significant benefits of electronic signatures as you have got a clear idea about E-signature and its benefits.
Top 10 Uses of Electronic Signatures
Now that you have been familiar with the basics of electronic signature and its benefits, it’s time to move into the critical section of this article. Let’s explore the uses of the electronic signature that has broadened its adoption over the world.
1. Sales Contracts
Almost all businesses are dealing with sales contracts. These are documents that are signed quite frequently. Besides, sales contracts are also crucial to the companies. Delay in signing such agreements can affect your business’s profit. You need to complete the process faster and in a secure way. This is where you can consider the use of electronic signatures. The sales contract can include business to business sales, residential business, real estate transactions, and more.
Business examples that come under this are real estate contracts, B2B sales, and service businesses.
2. Supplier and vendor agreements
A small-scale business often faces issues while negotiating with vendors. So, it is better to lock down the agreement, price, terms, and conditions as soon as possible. If you go for manual signing, you may face a delay in this process. By using electronic signatures, with just one click, you can obtain the sign and finalize the deal. It is quite easy to use and quicker than traditional methods. You don’t need to wait for the moment to sign a document, but you can do it when you want.
Some of the business examples that involve supplier and vendor agreements are consumer/business services and retail services.
Read: Top 10 Factors You Should Consider While Choosing an E-Signature Vendor
3. New customer forms
Do your customers want to fill out some forms or some other documents to carry out business with you? If yes, you can take advantage of the use of electronic signatures. There is no need to go for the lengthy process of printing the documents and get them signed. Besides, by using e-signatures, you can effectively prevent rekeying the data. It also leads to zero virtual errors.
The business examples that involve new customer forms are clinics, salons, spas and more.
4. Change in orders
Those who are running the project-focused business; for them, changes are quite common. However, you can face a surprise in the middle of the project, and your client may change the mind. They can increase or decrease their orders. During such a condition, you can face project holdups. The use of electronic signatures can significantly avoid holdups. You can approve the change in orders with the signatures quickly. Besides, you can easily maintain all your documents in the cloud and review them anytime you want.
Some common business examples which may get benefits of electronic signatures are construction business, architects, and web designers.
5. Customer approvals
Getting final approval before starting the manufacturing or production process is quite essential for the company dealing with custom-made products and services. When it comes to getting approvals, you can use electronic signatures to make it fast. It gives you enough time to focus on the order, instead of spending your time for obtaining the approvals. There is no need to visit the customers and get their signs on the approval documents.
Some common business examples that require customer approvals are custom furniture businesses, custom art businesses and print shops.
6. Employee onboarding
The process of hiring a new employee involves a lot of paperwork. For example, contract forms, enrolment benefits, automatic paycheck deposit, and more. If you sign all those documents manually, it can take a lot of time. However, you can save your time with the use of electronic signatures. Just click on the button, and you are done with the signature work.
Here the business examples that may require employee onboarding are the businesses with more than one employee.
7. Licensing of intellectual property and other legal agreements
As per law, the legal documents should contain valid signatures of the involved parties. Otherwise, the material will not be considered as accurate. So, here, you can consider the use of electronic signatures. The reason is most of the e-signatures are bound with rules and regulations, which are accepted by the court. They are perfect for signing legal documents. All you need is to make sure that the local authority approves the E-signature software.
Business examples in which licensing of intellectual property and other legal agreements is involved are technology companies, real estate companies, franchise businesses, and more.
8. Non-disclosure agreements
In general, the non-disclosure agreements offer you better security. Besides, it lets you conduct your business freely. When it comes to signing such an agreement, manual signing can lead to being inconvenient. Moreover, the manual sign is not safe, and one can use it for the different types of criminal activities. The most secure way to sign the non-disclosure agreement is the use of electronic signatures. With this, you can sign the documents through your mobile, and you can handle all the process with confidence.
Some business examples where the use of non-disclosure agreements is very common are outsourcing companies, investigation companies, and other private companies.
9. Distributor agreements
If you are doing business with distributors, dealers, and other such channels, then you can enjoy a better company with the use of electronic signatures. When there are lots of partners who are involved in getting signatures and managing the agreements, it can create a lot of confusion. But with e-signature, it is now quite easy to handle such a task. You can obtain signatures and manage the documents through the cloud services.
The primary business examples where distributor or dealer agreements are used includes wholesalers, distributors, and technology companies.
10. Parental consent and age verification
No matter what are your requirements, whether you want to verify your employee’s age or work with kids, you can use E-signature. Besides, you can integrate with their ID to simplify the process of verification.
Business examples where parental consent and age verification documents are required include kids’ school, school field trips and more.
Apart from this, we collect some other businesses which may use electronic signatures. These are:
Retail Sales
- Signing the sales and purchase orders as well as invoices.
- Licensing agreements signing.
- Company and end-user agreements.
Human Resources
- Employees hiring.
- Acknowledgment statements.
- The signing of timesheets.
- Tax forms.
Legal Services
- Signing the contracts of retention and fee.
- Acknowledging confidential transactions.
- Acknowledging documents of power of attorney.
Insurance
- Verifying policy agreements.
- Signing the documents related to claim to process.
- Renewals of policy and service.
Finance
- Taxation documents.
- Accepting loan applications.
- Disclosures.
In detail, the use of electronic signatures can help you in managing your business in a better way. This is quite easy and cost-effective. But always remember to choose the best e-signature software to enjoy maximum benefits and security.
Just imagine, a document’s management process where there is no need to do any print and fax. No need to remember the person who signed the documents. Remember that by understanding the use of electronic signatures, you can enjoy a world of fantastic opportunities.
Conclusion
Whether be a small-scale or large-scale business, to enjoy the maximum profits, you need to utilize every second. If you waste your time in dealing with document signatures and management, it can affect your business. So, to avoid all such conditions, you should always use electronic signatures when it comes to signing various business-related documents.
The above discussion has pointed out the benefits and uses of electronic signatures. Besides, you learned the uses of E-signature for small scale businesses. No matter what types of paperwork you are involved in, you can save your money and time through the use of electronic signatures.
So, adopt electronic signature now and get ready to witness a better business growth. Forget manual signing with electronic signatures!
