Signatures are the most common form of authentication and
verification. While most people are used to and comfortable with
pen-and-paper signatures, electronic signatures are now becoming the norm for many business transactions.
So what exactly is an e-signature?
It’s a signature made up of an electronic symbol, sound, or code attached to a document or contract to verify that a specific party has signed the document. E-signatures are legally binding across the globe.
In 1999, The European Union Directive for Electronic Signatures was
passed, and the United States followed suit and passed the Electronic
Signatures in Global and National Commerce Act (ESIGN) in 2000. These
acts ensure that a contract signed electronically has the same legal
strength as a traditional paper contract.
There are numerous advantages of using e-signatures, leading to their
increased popularity. In fact, many believe that this is going to
become the standard way of executing business contracts in the near
future.
A Greener Environment
With the use of traditional paper and ink documents, a lot of paper
is used for contracts and other records. Using e-signature software
makes paper unnecessary. Reduced usage helps to conserve trees and keeps
the environment cleaner.
Decreased Costs
A very clear advantage of using electronic signature
software is the ability to reduce the cost required for paper, printing
ink, and all costs involved with the delivery of the documents to all
parties. In corporations, the average authorized employee signs dozens
of documents each year. Therefore, using e-signature software, a
substantial amount of paper, printing, and faxing products can be
eliminated from the budget, saving a considerable amount of money.
Increased Profits
With e-signatures, there’s no need to spend time printing, handling,
and delivering paper contracts. This increases productivity, allowing
for more time spent focusing on other deals and boosting sales
productivity significantly.
Integrity Of Contracts
Every step of the signing of a document with e-signature software is
verified, tracked, and recorded. There is no way to manipulate or
counterfeit a signature, as many security protocols ensure authenticity,
more so even than with a traditional paper document. An audit trail is
produced for each signature that can be readily checked if there ever is
a need, and any discrepancy can be pinpointed.
Better Customer Experience
Many customers get frustrated by the amount of time it takes to get
through signing and finalizing contracts, and the gap of time between
when the contract is signed and when the wheels are set into motion.
With electronic signature,
the contract signing process can be accelerated, thus saving the
customers’ time and increasing their satisfaction. The gap time can also
be completely eliminated, allowing for a smooth transition between
agreement and execution of a contract.
Electronic signatures have very significant advantages over
traditional paper contracts, leading to an ever increasing number of
businesses adopting this technology. There’s no reason not to follow
suit, as it is the standard of the future.
Get ahead of your competition, and start to increase productivity and
company revenue today with electronic signature technology!
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