Signed, Sealed, Delivered
The benefits of using e-signature for contract sign-off
The content of this article is not intended to, and does not, constitute legal advice, and should not be used, referred to or relied upon as such.
As your business grows, it’s likely that the volume of contracts it handles, whether customer or supplier-facing, will grow with it. Having taken time to review and prepare a contract for sign-off, it’s crucial that the sign-off process itself, which is largely administrative in nature, does not slow your business down unnecessarily. In this article, we explore a number of ways in which digitising sign-off, through use of an e-signature application, can be of huge benefit both to your business, and otherwise.
Escaping Snail-Mail
The drawbacks of relying on snail-mail are long-established and well-publicised, however in the context of your business’ contracting activities, they can also be particularly potent. By placing a contract into the post for signature, we’re accepting an immediate slow-down to potential turnaround times as we wait for the contract to be picked up, delivered, signed and then returned. Furthermore, a modest delay to turnaround times alone is actually likely to be a best-case scenario when we also consider the very real possibility of the contract being lost in the post, together with the resulting risk to confidentiality if this happens.
By moving to e-signature, we can ensure that contracts are distributed to intended signatories directly, securely and instantaneously. A number of e-signature applications also provide the additional comfort and transparency of notification once the recipient has opened the e-envelope and viewed its content.
Flexibility
Despite your best efforts, mistakes do happen from time to time. In the event that you become aware of an error in a contract after having already distributed a paper copy for signature, its subsequent retrieval, correction and re-distribution is likely to prove awkward and time-consuming.
Similarly, if you distribute a paper copy contract only to find that the intended signatory is on holiday or otherwise unavailable, having the document re-directed to a back-up contact could prove equally tricky.
The flexibility afforded by e-signature can help us to overcome these challenges; e-envelopes can be abandoned and re-sent in a matter of moments for example, thereby reducing turnaround times on any contractual corrections. In addition, a number of e-signature applications allow their e-envelopes to be retrieved and re-directed to alternative contacts in just a few clicks. Whilst mistakes will continue to be made, it’s clear that e-signature can help us to greatly reduce their impact.
Mobility
It’s not unreasonable to suggest that those tasked with signing contracts on behalf of your business are likely to be its senior stakeholders, including executives, board members and departmental leaders. It’s also safe to assume that these individuals are likely to be very busy; any steps we can take to save these individuals time, however incremental, can therefore prove invaluable.
One of the major benefits of e-signature is the increased mobility it can provide to senior stakeholders in the handling and sign-off of contracts. Where previously, a signatory travelling for business purposes may have been forced to wait to sit down at a desk in order to leaf through a lengthy paper-based document, or otherwise may have been forced to print and carry that document with him or herself during the relevant journey, with e-signature, a stakeholder can review and sign an agreement on the go via mobile, whether in the airport departure lounge or on the train station platform. E-signature can therefore help senior stakeholders to make the most of any travel-related waiting time, whilst also alleviating the burden of printing and carrying cumbersome paper-based documents.
Record-Keeping Made Easy
Once fully-signed, paper-based contracts have a habit of disappearing into the bottom drawer never to be seen again! If your business handles even a modest number of contracts, arranging for their storage, if they’re paper-based, can be costly and time-consuming. You may decide to digitise these documents by scanning them, however the administrative burden which accompanies the scanning of numerous agreements can also be significant, especially where a single agreement has been signed in multiple counterparts.
We can avoid these difficulties through use of e-signature; your e-signature application will present all interested stakeholders with an electronic copy of a contract immediately upon completion of sign-off. Record-keeping can then become as simple as saving a .PDF file to an appropriate folder on your business’ network.
An additional benefit of e-signature, which should not be overlooked, is that your application will likely retain a copy of each signed contract for a defined period of time post-completion. If the worst should happen to your business’ network for any reason, it’s possible that all will not be lost and that a back-up copy of your signed contract will be readily available.
Protecting the Environment
Finally, it’s important to acknowledge the benefits which e-signature can provide from an environmental standpoint. By offering a digital alternative to the printing, posting and physical transportation of contracts, which at times may need to be delivered on a cross-border or even worldwide basis, e-signature can deliver a meaningful reduction in your business’ consumption of paper and toner, whilst also reigning in its carbon footprint. Not only are these benefits great for the environment but they also provide a good-news story which can potentially be told to your customers and commercial partners.
To Conclude
By digitising your contract sign-off processes through use of e-signature, you can help your business to escape the long-standing challenges associated with snail-mail, whilst boosting flexibility and mobility for your stakeholders. Accompanying reductions in the use of paper, toner and physical transport, ensure that a move to e-signature represents a win not only for your business but also for the environment.
If you require assistance with any of the matters discussed in this article, or would like to find out more, please get in touch via hello@ne2-data.com