The Pros and Cons of Electronic Signatures

Innovative solutions to everyday life operations are coming up with every dawn. Developers are creating tools to enhance lives and bring about efficiency in how business owners run their operations. One of the solutions gaining traction in the business world is electronic signatures. Electronic signatures, as the name suggests, enable you to sign documents digitally. You don’t have to be physically present to sign your contract or get approval. Sounds intriguing, right? Are you wondering whether you should adopt this digital tool in your organization? This article will help you make this decision by discussing the advantages and disadvantages of electronic signatures. Read on for the insight!

Pros of Electronic Signature

Better Project Completion

Most projects are always time-sensitive. Delays in project execution lead to the waste of many resources, which isn’t always ideal since costs are involved. Part of the project execution process involves document signage by various parties. This stage often causes delays, especially when some parties aren’t physically available to sign their part of the contract. In most cases, work can’t go on until they sign. This is where electronic signatures save the day.

With e-signatures, you no longer have to wait weeks for your project to start because of a lack of signatures. You can send the documents to the relevant party, be it other professionals or the client, digitally. They sign using e-signatures and send the documents back to you in a few minutes. You’ll be able to stick to your project execution schedule and finish it on time. Visit jSign.com to find out how to request signatures from your documents’ recipient.

Increased Customer Base

For most businesses, geographical location is often an issue. Some owners, especially those in service provision, find it challenging to offer their services to clients in another part of the world. The document handling process often becomes a challenge and expensive since either you or the client has to fly to get to the other party for them to sign the necessary documents. Due to the associated costs of this procedure, most entrepreneurs prefer to keep their operations localized. Localizing your business operations hinders its growth.

However, the narrative changes once you adopt electronic signatures. You can take on any clients from whichever part of the world they’re based. This increases your customer base, increasing the chances of making more profits. All you must do is send the contracts and documentation for them to sign. No party is inconvenienced in the process, making it suitable.

Saved Money

Money is the cornerstone of any business. You can barely run your operations without funds. Therefore, business owners tend to reduce expenses to avail more to fund the core operations. The lack of using electronic signatures defeats this purpose. You must print the physical document and send it to the said party. You’ll incur the cost of getting the printing paper and associated components, such as the printer and ink, and the courier you’ll use to ensure the party gets the documents. On the other party’s hand, they’ll also incur costs when sending back the document. With most contracts, you’re likely to be in charge of all the costs associated with making the contract solid. These costs can accumulate, especially when sending the document to several parties.

Electronic signatures don’t consume a lot of money. There are no printing or delivery costs. You’ll only incur costs in terms of internet usage, based on the document size. However, these costs are much lower than what you’d spend sending the paperwork physically.

Cons of Electronic Signature

Unwilling Customers

Although digitization has many benefits, some of the population is still reluctant to adopt it. Some could be unwilling because they aren’t tech-savvy, with others preferring to stick to the old techniques of handling business.

In such situations, some clients may decline to work with you, which isn’t ideal for business. With others, you have to send them the documentation physically, whether you’ve invested in electronic signatures tools. This doubles your expenditure and lowers your return on investment in the tool.

Security Issues

The digital handling of contracts comes with security risks. Although you can track the documents and see who accessed them, the time they spent on the document, and the changes they made, security is still a concern. Why?

In most cases, the features may be safe, but the software isn’t secure. The developer might not have invested in data security aspects, such as data privacy and protection, as well as anti-virus and anti-malware tools. Placing documents in a tool that lacks these features puts your documents at risk. A hacker can access these documents and use them for the wrong reasons, jeopardizing your contract.

It’s advisable to vet the security and privacy policy of any e-signature tool you use before investing in it. Your vendor can shed more light on this.

Conclusion

Electronic signatures serve a great purpose in the document handling process of any agreement. However, like any other innovation, e-signature also has disadvantages. The discussion above sheds light on the merits and demerits of this innovation. With this information, you’re better placed to decide whether to adopt electronic signatures. Be sure to make the right decision, all factors considered.