Pros and Cons of Electronic Signatures

Electronic Signatures

Electronic signatures have become increasingly popular over the years, with many businesses and individuals embracing them as a convenient and efficient way to sign documents. Electronic signatures, as the name implies, allow you to sign papers digitally. You do not need to be there in person to sign your contract or obtain approval. Sounds fascinating, right? If you are debating whether your company ought to use this digital tool, here are some advantages of electronic signatures you should know;

They are convenient

One of the most significant advantages of electronic signatures is their convenience. With e-signatures, you can sign a document from anywhere, anytime, using any device with an internet connection. You no longer need to be physically present to sign or send a copy by mail or fax. You can sign documents from your smartphone, tablet, or laptop. E-signatures save you time and effort, making your life easier.

They save time

Most companies use a lot of time moving paperwork which is an unnecessary waste of time. Using electronic signature software, you may send papers for signing in minutes, track their progress, and save the signed documents for later use. As a result, you will have more time to focus on developing connections with your clients rather than handling administrative tasks.

They save money

Electronic signatures can also help you save money. Traditional signatures require printing, signing, and mailing or faxing documents, which can be costly. ESignature eliminates these costs by allowing you to sign documents digitally. As a result, you don’t need to spend money on printing or postage or waste time waiting for documents to be delivered. E-signatures are a cost-effective solution that can save you money in the long run.

They enhance document accuracy

It might be disappointing to receive a paper signed only to discover that the signer skipped a page or failed to complete some necessary information. Using electronic signature software may specify mandatory fields required. This guarantees that your documents are always entirely accurate. Hence, bid farewell to the days of locating your clients and business partners to get them to deliver or resign incomplete forms.

They are easy to use

Signing documents online is easy for you, your customers and your staff. Most electronic signature platforms are designed to be user-friendly and intuitive, meaning you do not need any special skills or training to use them. As a result, electronic signatures are a great option for businesses and individuals who want to sign documents quickly and easily.

Cons of electronic signatures

While electronic signatures certainly have advantages, it’s important to consider the potential drawbacks.

Security concerns

Signing documents electronically comes with security risks. When you sign a document electronically, you rely on technology to secure your signature. This can be a problem if the technology is not up to par. Hackers can intercept electronic signatures and use them for fraudulent purposes. While reputable electronic signature providers have measures to prevent this, there’s always a risk that your signature could be compromised.

Limited storage options

Some providers of electronic signatures demand that you keep your papers on their systems indefinitely. Several companies are concerned about this because they want to oversee where the personal data of their clients are kept. Be sure your electronic signature provider can transfer control of your papers and securely delete any copies from their servers.

Unwilling clients

Despite the many advantages of digitization, some people still hesitate to use it. Some people might not be interested since they aren’t tech-savvy, while others might choose to stay with traditional business methods.

In such cases, certain clients may decide not to work with you, which is not good for your business. With some customers, you must physically submit the paperwork to others regardless of whether you have invested in electronic signing solutions. This increases your costs while decreasing the tool’s return on investment.

Technical issues

Electronic signature software can be complex, and you may encounter difficulties if you are not tech-savvy. For example, you may have trouble accessing the electronic signature software or find that it doesn’t work properly with your device or operating system. Technical issues can be frustrating and time-consuming, leading to legal problems if you can’t sign a document on time.

If you weigh the advantages and drawbacks of electronic signatures, you can decide whether this technology is appropriate for your company.