The amount of small businesses being put up has increased in most recent years and will only continue to increase in the future. Small businesses have been competing with well-known establishments for countless years, but at present, what can entrepreneurs do to keep up with popular and renowned enterprises?
Electronic signatures, also referred to as e-signatures, are the digital versions of traditional, handwritten signatures. According to the Electronic Signatures in Global and National Commerce Act (E-Sign Act) of 2000, a federal law in the United States, e-signatures are defined as “an electronic sound, symbol, or process attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record.”
The E-Sign Act provides a general rule of validity for electronic records and signatures for transactions in or affecting interstate or foreign commerce. For an electronic signature to be legally recognized in the United States, the following requirements must be satisfied:
- There is an intent to sign the document — Just like traditional signatures, electronic signatures will only be considered valid and legal if all of the parties have the intent to sign the document.
- There is consent to transact digitally — All of the parties involved in the transaction must affirmatively agree to do business digitally and use electronic records for the transaction. Furthermore, for their electronic signatures to be valid and legal, all of the parties involved must not withdraw their consent.
- There must be an electronic signature record — An electronic signature record contains important information about a certain individual’s transaction such as when a document was created, opened by the recipient, and signed.
- The electronic signature record must be retained — The records made for each transaction must be retained. Moreover, it must be reproduced just in case any of the parties would like to obtain a copy for reference.
E-signatures have been around for decades, but there are still some businesses that have adopted them yet into their customer service and overall business workflows. Here are some benefits of utilizing e-signatures in your small business:
Less Clutter
As a small business owner with a tight budget, being able to have your own shop, workplace, and storage is a difficult task. You are going to have to make the best out of whatever space you were able to obtain, regardless of the said area’s square footage. With that said, being able to utilize the space you currently have is a must for small business owners.
Moreover, having a neat and well-organized workspace does wonders. A messy and cluttered workspace tends to overwhelm and stress out employees and business owners, slowing down the progress and the efficiency of their workflow.
As a small business owner, utilizing e-signatures will lessen the use of paper in your office, boost your productivity, and help create more space.
Whether you are a small business owner who has just started your venture or an entrepreneur who has been in the industry for years, integrating e-signatures into your business will surely help you at present and for many years to come.
Cost-Effective
Small business owners normally do not have a hefty budget allocated for the different aspects of their respective ventures. Even if this is the case, small business owners still carry the same burden along with other much more known and well-established enterprises regarding business expenses such as mortgage payments, payroll costs, utility costs, and other important expenses.
E-signatures are digital. Thus, the use of paper, ink, and postage will not be necessary for any of the transactions you need to make. Cutting down on printing and mailing costs will help you allocate more money for other aspects of your business.
Storing a large number of documents, receipts, contracts, and important paperwork will surely take most of your space, but by fully integrating e-signatures into your workflows, you will not only save space but also time, money, and effort.
Better Security
Contrary to what some people may think, e-signatures are actually much more secure than traditional, handwritten signatures. Compared to wet signatures which can be forged, an individual’s e-signature is protected by several layers of security, including electronic signature records, identity authentication methods, and encryption.
An electronic record serves as proof of transaction. It contains important information about a certain individual’s transaction such as when the document was viewed and signed. In some cases, the electronic record may also indicate the location of the individual who signed the document.
To protect an individual’s electronic signature, a number of signer identity authentication methods can be utilized; one of these methods is email authentication. The signer will be sent an embedded link that will redirect him or her to the document. Once the link has been clicked, the signer will be authenticated. Another signer identity authentication method is the use of a one-time PIN (OTP). A unique personal identification number (PIN) will be sent to the signer’s phone number. Once the PIN is received, the signer will then enter the number into the login page where the electronic documents he or she needs to sign are.
Other than the listed layers of security, individuals will be able to prove that they have completed their transactions because of the presence of tamper-evident seals and certificates of completion.
A tamper-evident seal is used to digitally secure a transaction once a certain individual has finished signing his or her documents. This seal indicates that an individual’s e-signature is valid. Furthermore, a tamper-evident seal shows that the documents have not been altered or edited after the completion of the signing.
A certificate of completion is an electronic document that contains detailed information about a certain individual’s digital identity and his or her document activity. The information included in the certificate of completion may include but are not limited to the email address of the individual, the image of the signature, timestamps of key events, the individual’s IP address, and the individual’s consumer disclosure stating that he or she has agreed to make use of an e-signature.
As a small business owner, you are responsible for keeping your transactions secure and your clients satisfied with your services. When you adopt electronic signatures, you will be able to keep your transactions safe from forgery, individuals altering your digitally-signed documents, and other types of risk associated with legal transactions. When your clients are happy and satisfied with your services, your business may attract more clients through them.