Printing an agreement or contract, signing it, and then scanning and mailing it takes a lot of time which shouldn’t be the case for today’s business operations. That is why investing in an e-signature solution can be the best decision you can make as a small business owner. However, there is more to electronic signatures than just providing efficiency. Here are five other things that SMBs must know about e-signs.
1. Electronic signatures are legally acceptable
Electronic signatures have been getting recognition since 1999, and a number of countries including USA, Australia, Canada, European and Asian countries have started accepting them as equal to wet-ink signatures. The Uniform Electronic Transaction Act (UETA) and The Electronic Signature in Global and National Commerce Act (ESIGN) of 2000 recognize that e-signs have the same legal weight as typical handwritten signatures. There are a few exceptions regarding what kinds of documents these acts cover. However, it is clear that courts of law recognize online contract signing.
2. There is a difference between e-sign and digital signature
Electronic-signature usually involves representing signatures on an electronic document. It can be simply typing your initials into a signature box or clicking an “I agree” tab on a website or an application. One notable feature of an e-sign is that it shows the intent by the signee to execute the document.
On the other hand, Digital signatures, are forms of e-signatures that are encrypted and coded to prevent tampering, impersonation of a signee, and improve security overall. Anyone signing a document digitally needs a digital certificate. The certificate contains a private and public key – known as a “key pair.”
3. Does business processes change after adopting e-sign
Virtually, any kind of change brought about by electronic signature solutions is helpful. In fact, e-signature allow small and medium businesses to execute electronic documents using the very same document management applications they are already using, such as PDF, Microsoft Excel, Word, SharePoint, and others.
4. E-signatures are secure
If you carry out brief research on electronic signatures, phrases like “algorithm,” “signing certificate”, and “public key infrastructure” repeatedly pop up. Usually, plenty of behind-the-scenes technological matters take place when a document is electronically signed to ensure the signers are exactly who they claim they are and the information being relayed is secure. Small business owners should take advantage of the security aspect offered esignature solutions.
5. Incomparable benefits of e-signature
Applications that enable online contract signing are exceedingly valuable to any small business. The only electronic signature software can enable businesses to automate signature-dependent practices reliably and with integrity.
By curtailing dependence on paper for getting a signature, eSignature solutions enable SMBs to boost their efficiency by reducing turnaround times, minimize organizational spending on paper costs, and improve customer satisfaction by simplifying the collaboration process.