The digital age has transformed how business is conducted, placing greater emphasis on speed, efficiency, and accessibility. One area seeing rapid change is the process of signing and executing legal agreements or other documents.
Traditionally, wet ink “pen to paper” signatures were standard, which involved printing hard copies to sign by hand, then scanning, faxing, or overnight mailing them to the recipient. Today’s remote workforce often relies instead on electronic signatures (eSignatures) to instantly confirm approvals and consent while maintaining full legal validity.
Some common types of eSignatures include:
- Typed name signatures.
- Drawn signatures using your mouse, finger, or stylus.
- Uploaded images of your signature
- Unique encrypted digital signature identifiers
No matter the format, eSignatures create signatures that cannot be easily copied or forged. They provide proof of an agreement between parties and approval of the document signed.
Key Benefits of eSignatures
The esignature solutions allow you to electronically sign documents with legal validity. For maximum convenience, businesses should implement eSignatures to accelerate contract approvals. Here are some of the major upsides that explain the immense popularity of eSignatures today:
Convenience
Sign documents anytime, anywhere from your chosen device – no printing, scanning, faxing, mailing, or couriering required.
Speed
Instantly send, sign, and receive documents without delay. eSigning accelerates agreements and approvals.
Security
Document encryption, authentication safeguards, and tamper-evident seals boost security.
Environmental Savings
Signing digitally eliminates paper waste and carbon emissions from printing.
Record Storage
Signed documents get stored in the cloud for easy sharing and secure long-term access.
Compliance
Audit trails record signing activity for compliance with regulations like HIPAA and FINRA.
Mobility
Sign on smartphones and tablets when on-the-go. Great for signing while traveling.
Cost Savings
Avoid printing supplies and postage costs when sending contracts.
For personal and business use, eSignatures outshine old-fashioned handwritten signatures across the board.
Are eSignatures Legally Valid?
Yes – electronic signatures have been legally valid and enforceable for contracts and documents since the US ESIGN Act (Electronic Signatures in Global and National Commerce Act) passed in 2000. Under the Uniform Electronic Transactions Act, eSignatures cannot be denied legal effect or enforceability simply because they are in digital form.
Today’s modern eSignature software uses sophisticated cryptography to provide authentication and prevent fraud. If proper eSignature protocols and processes are followed, eSigned documents hold up as binding legal contracts in court.
How Do eSignatures Work?
Let’s look at the typical workflow when eSigning a document:
- Create– The document originator drafts an agreement or other paperwork needing signatures in a format like Word, PDF, or HTML.
- Upload– The document gets uploaded into an eSignature platform by the originator.
- Add Fields– Signature, date, and other data fields get added where signers need to provide information.
- Send to Signers– The originator specifies signers and sends them the document via email with an embedded link.
- Fill & Sign– Recipients open the link, provide requested inputs like signatures, and submit the completed form.
- Finalize– Once all signers complete their parts, the originator gets notified and finalizes the agreement.
- Save– The signed document gets stored in the cloud for access by all parties as needed.
It’s a smooth end-to-end digital process that’s far more efficient than paper contracts.
What Are eSignatures and How Do They Work?
An eSignature is any electronic mark, sound, or process attached to a document to verify signer’s identity and agreement to the terms. Legally, eSignatures carry the same weight and enforceability as a handwritten signature via laws like the U.S. ESIGN Act and EU eIDAS regulation.
Common types of eSignature include:
- Typed name– Manually typing your name on the signature line.
- Drawn signature– Using your mouse/touchpad to create a signature.
- Uploaded image– Inserting a scanned image of your handwritten signature.
- Click consent– Clicking an “I agree” button.
- Biometric signatures– Using fingerprints, facial recognition, or other biological data.
After affixing your eSignature and clicking to approve the document, the software automatically tracks, stores, and embeds authentication data into the file through encryption. This prevents tampering and solidifies signer identities. Copies are shared with all parties instantaneously.
Top Benefits of Switching to eSignatures
Migrating your signature process to an electronic system powered by eSignatures offers major advantages:
Instant Transactions and Approvals
Rather than printing, signing, scanning, and emailing documents which takes days, eSignatures enable sign-offs and confirmations in minutes regardless of signer location. This accelerates transactions and workflows.
Enhanced Security Protections
Encryption, digital audit trails, and access logs prevent eSigned documents from unauthorized changes. Identity verification options add further security.
Improved Accuracy
Electronic documents populate required fields automatically, prompting signers for the necessary information to reduce mistakes or incomplete forms.
Cost and Time Savings
eSignatures eliminate printing, overnight shipping, and storage expenses. They also minimize transit time compared to paper signature routing for approvals.
Simplified Tracking
Audit trails make it easy to monitor signature status and completion in real-time. eSignature tools also organize executed docs.
Better Customer Experiences
Instant eSignature transactions provide fast completion. Customers can sign 24/7 from anywhere rather than scheduling office visits.
Environmental Benefits
Paperless eSignature workflows are greener with no printed documents ending up in landfills.
eSignature Use Cases
Many common business situations are ideally suited for eSignature adoption:
Contractor Bidding and Proposals
Construction firms use eSignatures to send proposals to clients, gain sign-off on bids, and finalize contractor agreements without delays.
Employee Onboarding
HR can email new hire packets to employees to complete via eSignature so workers can join remotely, and training can begin ASAP.
Insurance Applications
Insurers leverage eSignatures so applicants can complete forms, provide eSignatures for consent, and get policies bound instantly.
Account Opening
Banks send account opening documents to clients electronically to eSign from anywhere, opening accounts quicker.
Sales Transactions
Sales reps close deals faster, sending quotes, contracts, and payment forms for customer eSignature to complete sales cycles in minutes.
Selecting the Best eSignature Software
To implement eSignatures, you will need compatible software. Here are key features to look for:
- User-friendly interface for sending, signing, and managing documents.
- Customizable signing workflows and routing capabilities.
- Templates for standard documents to expedite processing.
- Integration with popular business tools like CRMs, cloud storage, etc.
- Multi-layered security protections for signature validity.
- Audit trails detailing user actions like IP address, signing time, etc.
- Scalability to grow with your rising eSignature use.
- Available technical support and onboarding assistance.
- Competitive pricing structure with transparent costs.
Choosing feature-rich software ensures your eSignature process is easy, convenient, and highly secure. The right solution will deliver significant time and money savings.
The digital transformation has created ample opportunity to improve outdated manual document handling through modern eSignature technology. Streamline approvals, accelerate agreements, enhance security, and enable 24/7 signature access for your business.
