Why You Should Make the Switch to Online Contract Signing
Online contract signing has simplified the time-consuming traditional procedure of pen and paper contract finalization by allowing parties to sign documents online. This innovative way to authorize agreements is proven to be more efficient, and a majority of today's leading companies use eSignatures in their contracting processes due to their various benefits.
The rising popularity of online contract signing
Electronic signature technologies are more important than ever for companies to execute new contracts and move their operations ahead of the competition.
Signing contracts using wet ink was already tedious, but now that teams are dispersed around the globe, it's become even more impractical, if not impossible. Electronic signatures are now widely used in most nations. Today, companies are empowered to get contracts signed online due to increasing technological advancements and the legality of e-signatures.
The top 4 reasons to send and sign contracts online
Virtual signatures are becoming a business necessity, and a viable replacement for traditional signatures as firms continue to digitalize their daily operations. You can save time and money with online contract signing instead of printing, scanning, and shipping papers. Electronic signatures make business deals much easier.
Here are four benefits of using electronic signatures to sign contracts:
1. Fast turnaround time
Digital signing can save days, if not weeks, compared to the outdated method of signing documents in person. This allows you to reduce their contract turnaround time, which means new agreements can be negotiated and put into force faster. As a result, your company can realize your agreement's value faster than ever before.
2. eSignatures security
Most online signing platforms have various security features and precautions to protect your information. These features include data encryption, role-based permissions, password-protected repositories, and signature verification. Sending confidential documents to external signers in person exposes you to the risk of unauthorized people gaining access to your sensitive information. However, with eSignatures, your data can only be accessed by individuals with permission.
3. Reduce the potential for human error
Contract management programs are commonly used by businesses to add signatures to their documents. These apps also have a variety of other advantages, including the ability to minimize the number of errors in contracts. A range of tools such as automated approval workflows, templates, and content libraries allow you to provide the other party with an error-free document to sign.
4. Lower costs
When compared to the price of sending contract documents to several signers, eSignatures can save a lot of money, especially for departments that handle a large number of contracts. Additionally, printing, preparing, and sending contracts consumes time that could be better spent on higher-value tasks. This transition reduces the time - and thus the cost - required to execute new agreements.
Tips for a smooth transition to online contract signing
1. Use a virtual eSignature platform
You can eSign documents in a variety of methods, and whatever approach you use is primarily determined by which signing program you prefer. While some providers enable quick and easy signing, others, such as contract management software, offer a variety of additional valuable capabilities to help you manage your entire contract lifecycle.
2. Avoid Common Software Shortfalls
- A limit on the number of signatures you can execute
- Additional charges for each feature
- Limited visibility
- Lack of reporting capabilities
- Confusing interface
Instead, look for a solution that offers everything you need.
3. Define the digital signing governance and framework
Businesses should work with their legal teams to understand the risk associated with eSigning, and consider the following:
- Identify industry, state, and country regulations
- Identify approved signers and the order in which they should sign
- Determine types of e-signatures allowed or required (typed, scanned, or written with a mouse or finger on a touch screen).
4. Identify a set of online signing candidates
Ensure early success with e-signing by focusing on one or two low-risk agreements to test the methods and strategy. Once you have a framework and a repeatable procedure, your team will be able to implement eSignatures for your other documents smoothly.
5. Assemble stakeholder group to drive adoption
Members from several of your company departments, such as sales, legal, finance, and management, should be on your rollout team. Adoption across all departments is crucial for the new system to succeed. Otherwise, your company will not reap the advantages and will rely on the old method of signing instead.
How to boost efficiency with online contract signing software
You might be apprehensive about using a new software system to save a few days of back-and-forth with in-person signing. However, we've reached a level of technological advancement that eliminates the need to be in-person to authorize a contract.
As a result, clients will soon expect their documents to be finalized via eSignature. If you don't have this option, your company's customer experience will likely suffer.
When looking for an online contract signing platform, make sure it has the following features:
- Ability to sign documents on a variety of devices
- Cross-platform integration
- Compatibility with a wide range of file formats, including Microsoft Word documents, PDFs, and image files
- Signatures meet the requirements to be legally binding
- Multiple people can sign the same document
- Allows long-term storage and record management
- Scalability for company growth
- Visibility of documents and processes
Investing in the best electronic signature software that suits your organization's needs is the easiest way to eliminate delays in your business operations, enhance security, reduce errors, and decrease unnecessary spending. When you implement eSignatures, you can prevent your company from falling behind the curve by relying on manual contract authorization methods.