What is an Electronic Signature?

What is an Electronic Signature?

Technology is advancing rapidly and more business processes are becoming digitalized. This shift is being accommodated by electronic signatures (also known as e-signatures). An electronic signature is a legally binding way to sign off on and approve a digital document.

Sizle, a modern e-signature solution, allows for secure, recognizable, and verifiable electronic signatures. E-signatures are accepted by many business processes, so traditional handwritten signatures are no longer necessary.

What is the reason for electronic signatures' popularity? Electronic signatures have many benefits, including faster document processing and simplified business procedures. They also offer advanced security. They are legally binding and can reduce operational costs.

Learn how to create an electronic signature and discover the benefits and uses of electronic signatures.

What is an Electronic Signature?

What is an electronic signature? Electronic signatures are legally binding ways to consent or approve of digital documents. An electronic signature can replace a handwritten signature for applications, nondisclosure agreements and onboarding documents.

Electronic Signatures: Legality

Electronic signatures can be legally enforced in many countries, including the United States. The ESIGN Act (Electronic Signatures in Global and National Commerce), which regulates eSignatures in the United States, affirms their validity for many purposes.

Electronic Signature Security

Many people are concerned that electronic signatures might not be secure. They can actually be safer than handwritten signatures. Electronic signatures provide an electronic record and digital audit trail that verify the transaction.

Some electronic signatures can also verify information such as the signer's exact location, provided they have consented to location tracking. The risk of someone trying to forge the signature is minimized by location tracking.

Electronic signatures that are more technologically advanced can be used in conjunction with stricter security measures such as mobile two-factor authentication. The signer might be given a digital code via their mobile phone and then need to enter it to sign off.

This type of electronic signature security is ideal for sensitive information. This could include documents such as legal documentation like a nondisclosure agreement, bank transactions or general financial paperwork.

Electronic Signature or Digital Signature?

Digital signatures and electronic signatures should not be confused. They are not interchangeable.

A digital signature, a type of esignature that provides additional security through the use of TSP (trust service provider), is a special kind of e-signature. The person signing the document needs to verify their identity and show that they have signed using certificate-based cryptography.

Electronic Signatures: Document Formats

Electronic signatures can be used with a variety of software including Word or PDF. This flexibility is great for businesses that need different document formats. This section will explain how to create an electronic signature using Word or PDF. Learn more about document conversion.

How to Make Electronic Signatures

Are you looking for an easy way to create an electronic signature? It is easy and fast with many software applications. It will look something like this, although the exact provider may vary.

The software or app must be downloaded by the person signing the signature. This can be done on their smartphone, computer, tablet or other electronic device. One of the following options can be used to "sign" your signature:

  • You can have your name typed into a box that will then turn the text into a signature.
  • They can also upload an image of themselves signing the agreement.
  • Some programs let you use your finger to draw your signature on the screen.

The document can be sent to another person via email if it needs to have its signature countersigned. To update the document, the recipient must sign it in the same way and then click "save", "finish," or another similar option.

An email may be sent to the original signer informing them that the document has been countersigned. This will ensure that everyone has the most current version of the document and helps to avoid miscommunication.

The Benefits of Electronic Signatures

Electronic signatures aren’t a new technology trend. Although they have been around for decades but only recently have they become more popular as people begin to recognize their benefits. These are just a few of the many benefits that electronic signatures offer.

Rapider Document Processing

Electronic documents can easily be signed anywhere and anytime, without the need for physical presence. E-signatures speed up document processing and remove bottlenecks in everyday business processes. They also allow for faster operations.

The signing process can be made faster by adding standard fields such as the date to the document. Many eSignature applications include digital tabs, such as colored post-its that show where people can add electronic signatures to Word documents or PDFs.

Secure & Reliable eSignature Tools For Business - Try It Now

This is a huge help when someone is trying find out how to add an electronic sign to PDFs. With the additional guidance, even people who have never used electronic document signing tools before will be able figure it out.

Simplified Business Procedures

The digital age has revolutionized the business world. Paper can cause clutter in an office. By encouraging digitization, electronic signatures simplify business procedures. Digitally signed documents can be easily sent, stored and saved electronically.

It's easier to streamline internal operations and to share information with external partners. It is not necessary to send a courier service, such as a bike messenger, to a client to sign. All of this can be done electronically by email.

Reduced operational costs

Businesses can save money by not having to print hard copies of papers for wet signing. This reduces costs associated with courier and mail services.

There are many other costs associated with printing hard copies that can be cut by businesses. Printing is less expensive, which reduces the need for ink cartridges and paper. You can also reduce or eliminate the cost of tools such as scanners and printers.

Environmentally friendly

Technology is advancing rapidly and more business processes are becoming digitalized. This shift is being accommodated by electronic signatures (also known as e-signatures). An electronic signature is a legal binding way to sign off on and approve a digital document.

Legally binding

Technology is advancing rapidly and more business processes are becoming digitalized. This shift is being accommodated by electronic signatures (also known as e-signatures). An electronic signature is a legal binding way to sign off on and approve a digital document.

Advanced Security

Technology is advancing rapidly and more business processes are becoming digitalized. This shift is being accommodated by electronic signatures (also known as e-signatures). An electronic signature is a legal binding way to sign off on and approve a digital document.

Electronic Signatures

It's no surprise, given the many benefits of electronic signings, that they are taking over the business world. The market is already valued at $2.8 billion. It is projected to grow to $14.1 billion by 2026.

Those figures may seem exorbitant. It is important to understand the many uses of electronic signatures. This will help you see how this level of growth can be achieved. Electronic signatures can be used to approve paperwork such as:

  • Lease/rental agreements
  • Financial documents
  • Sales contracts
  • Offer letters
  • Permission slips
  • Waiver of liability

E-signatures can be used in medical settings, such as to consent for clinical trials. An electronic signature is a unique benefit in this setting because it allows researchers and patients to remain safe from contagious subjects.

This topic raises an important point about the growing prevalence of esignatures: The impact of the COVID-19 Pandemic. Many companies quickly switched to remote operations when the pandemic hit in 2020. People worked from their homes around the world.

Electronic signatures, which can be legally binding and executed without the need for in-person contact, were required by the pandemic. Remote work will continue to be an important part of society as workers and companies start to appreciate the benefits.

E-signatures are also useful in a wide range of business industries. Every field, from real estate to sales, requires legally binding signatures at certain points in the business process.

Electronic signatures can be a great tool for business. One example is sales. An electronic signature can potentially accelerate the sales cycle by reducing lag time, enhancing the customer experience--ultimately allowing teams to close deals faster.

Commonly Asked Questions about Electronic Signatures

Are you still unsure about electronic signatures? These frequently asked questions give a quick overview of the key facts. They cover everything from how to create an email signature to how much it costs.

What is an electronic signature?

An electronic signature can be used to give consent or approve of a digital document. It can replace a handwritten signature on any type of paperwork and is legally binding. E-signatures can be used for legal documents, financial paperwork, as well as health documents.

What makes an electronic signature legal?

Yes, electronic signatures are legally binding in most cases under the U.S. ESIGN Act. (Electronic Signatures in Global and National Commerce). Other countries have similar legislation that allows for electronic signatures to be valid.

Are Electronic Signatures Safe?

Yes, electronic signatures can be considered secure and safe. Two-factor mobile verification, which adds an extra layer of security to sensitive documents like banking, can be added. E-signatures are considered safer than handwritten documents by some people.

How is an electronic signature created?

The type of software used will determine the exact method of creating electronic signatures. You may also find differences depending on whether you are using a Word or PDF document to sign your electronic signature.

There are three main options for electronic signatures. They can first type their name in a box. The program will then convert the text into a signature-style picture. They can also upload an image of their handwritten signature.

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They can also "draw" their signatures on the screen using a trackpad or a pen. The appropriate technology is required for this last option. You may need a smartphone or tablet with touch screen technology, or a laptop with trackpad.

Is an electronic signature the same as a digital signature?

No. No.

Are electronic signatures free?

Many providers offer electronic signing apps and programs. Some are free while others charge a fee. Sizle offers the possibility to create an electronic signature for free.

The Final Word in Electronic Signatures

Electronic signatures simplify business life in many ways. They make document processing easier, speed up operational processes, and save money by eliminating courier fees and materials costs.

Electronic signatures can be verified, secured, and legally binding in most instances. Electronic signatures can be used to replace a handwritten signature in approving documents or consenting to their contents. Many countries have already implemented e-signature legislation.

Many e-signature applications are available that make signing documents electronically easy. Sizle, an app that allows you to sign off digital documents electronically without the need for a pen or paper, makes it easy. This is a huge boon for businesses that want to reduce costs and streamline their operations.