Electronic signature and paperless office concept. A businessman uses a pen to sign electronic documents on digital documents on a virtual screen. E-signing. Technology and document management

Signatures are a crucial element to any business. Putting one’s signature on an important document denotes trust, acceptance, and invaluable evidence of the person’s identity.

However, signing papers and documents is time-consuming, especially if one must sign many papers daily. The method of obtaining signatures can also be challenging if the intended person is not around to sign the papers, affecting the workflow and efficiency of the business.

Thanks to technology, the innovation of electronic signatures (e-signatures) has opened opportunities and possibilities for businesses and individuals.

Electronic Signature: What Is It?  

An e-signature is simply the electronic form of a signature. Instead of the traditional way of handwriting signatures, an electronic signature allows you to sign documents online by scanning your face, finger, or retina or scribbling your name or signature on a digital device.

Utilizing e-signature involves three factors: the signatory, the business entity, and the e-signature tool or solution providing the platform for creating signatures. Using e-signatures has helped companies improve productivity, enhance customer satisfaction, and boost efficiency in the workplace.

Nonetheless, e-signatures also have their drawbacks. This article will enumerate the pros and cons of using e-signatures to help you understand whether this option suits your business.

Pros Of Using E-Signatures

  • Speeds Up Business Processes  

Several years ago, businesses had to print documents, put them in a folder, and present them to the signee for their signature. But if the signee is not around, the staff must send these papers by courier to have them signed. This means they need to wait a day or two for the signed document to be sent back to the office.

This long and tedious process can delay your business operations and affect your team’s productivity. With e-signatures, you don’t have to go through this tiresome procedure. You can use e-signature software to upload your documents online and send them to the signee(s) anytime, anywhere.

With the documents signed and sent back in a matter of seconds, you won’t have to hold off on any business activity, speeding up your operations and improving workplace productivity.

  • Enhances Security 

One primary concern regarding traditional handwritten signatures is that they’re at risk of signature fraud. More popularly known as forgery, signature fraud is the criminal act of replicating another person’s signature, especially if it’s simple enough to copy. Using e-signatures can make document signing more secure by eliminating forgery.

An advanced type of e-signature is the digital signature. It has features that make it more secure and compliant. It uses certificate authorities (CAs), complex algorithms, and trust service providers (TSPs) to verify the signee’s identity and the document’s integrity.

  • Improves Document Accuracy 

You may have experienced sending a multi-page document to the signatory and receiving it after a few hours only to find out they missed signing a page or forgot to fill out some essential information. This can be frustrating and time-consuming as you’ll need to return the papers and wait for them to complete the signing process.

The e-signature software can address such issues by improving document accuracy. This tool can detect which pages or mandatory information have been skipped, immediately notifying the signee to go back to the pages and sign them.

With this feature, you can be 100% sure that the documents will always be signed completely. Gone are the days when you must manually flip through the pages to check for lacking signatures.

  • Saves Time And Money 

Your team probably spends much time and energy shuffling, organizing, and filing paperwork, reducing productivity. With e-signatures, you can minimize paperwork since all signed documents can be saved and stored online for future reference. Tracking the documents’ signing process using one platform will also be more manageable.

With more time on your hands, you can focus on more essential tasks, such as building relationships with customers or providing high-quality service, instead of dealing with never-ending paperwork. Best of all, you can reduce your business expenses as you don’t have to spend on printing, faxing, and sending documents.

  • Enhances Customer Experience 

E-signatures aren’t designed solely for bosses and management-level personnel. You can also use e-signature to enhance customer service.

Instead of handing your customers multi-page documents for signing, you can use the e-signature software to send them the documents they can sign anytime, anywhere, using any device. This makes it quicker and easier for customers to interact with your business, enhancing their overall customer experience.

  • Gives You An Edge Over The Competition 

Although e-signatures have existed for some time, not all businesses are ready to embrace this technology.  Leveraging electronic signatures in your business operations will give you an edge over competitors who are resistant to change.

With significant benefits like cost savings, faster business processes, enhanced security, document accuracy and customer experience, using e-signatures can help ensure you’re on top of your game.

Sign document of deal on digital gadget. Digital signature on smartphone screen with woman hand. Close up.

Cons Of Using E-Signatures 

  • Has Limited Storage 

An e-signature solution can store your signed documents so you can easily monitor or retrieve them for future reference. However, some e-signature tools have limited storage. This can be a challenge for businesses that rely heavily on online data storage for their customers’ personal information.

As much as possible, invest in e-signature software with substantial storage to give you overall control of your documents. If you have to delete files that are no longer needed, the e-signature tool must be able to digitally shred the copies from their servers.

  • Lacks Security Features 

Different e-signature software solutions have varying levels of security. This means one electronic signature tool may be more secure than the others. The cheapest e-signature may not offer security protection against tampering.

Consider a solution that uses digital signature technology for enhanced document and signature security. It’s also wise to keep your e-signature software up to date with the latest security features.

  • Requires Access To The E-Signature Platform

If you wish to implement e-signature in all your business operations, it’s helpful to ensure your business partners, suppliers, and customers have the necessary technology to access and use the e-signature platform you have chosen. Although they don’t have to install the same software, ensuring compatibility and ease of use is essential for a seamless electronic signing process.

  • Entails A Costly Investment  

Like other technological upgrades, using e-signatures is a costly investment, especially if you want to use the most specialized and secure type of e-signature. So, check your budget to see if it’s something you can afford and can help you save money in the long run.

Is Electronic Signature Good For Your Business? 

Generally, any kind of business automation update is a good idea. Still, it would depend on the nature of your business and the work involved. So, go through the list of pros and cons of e-signatures and decide if it’s suitable for your business.