E-signatures have become a staple in a lot of companies because they are so efficient and easy to use. It takes only about 45 seconds to sign and return the document, which takes away a lot of time costs for any company.
In 1999, 47 States in the United States passed the Uniform Electronic Transmissions Act. This was adopted first in California and then moved into almost all the states. Only Washington, New York, and Illinois have a different set of laws for e-signatures. Later, the European Union also passed laws to enforce e-signs throughout their region. Quickly, a lot of other nations also started to adopt the laws. This meant it was really easy for companies to conduct business worldwide, in a matter of seconds. Now, e-signatures are protected worldwide under the law.
In 2000, the E-sign Act was signed into the Global and National Commerce Act that cemented that e-signatures were now legally enforceable. This meant that contracts that use e-signs were known a valid document under the American Law. This actually opened the room for a lot of companies that could know expand without using paper. It was important because now E-signatures were given the same amount of scrutiny as paper contracts.
This bill meant that now a lot of companies could incorporate the e-signs into their business model. This allowed them to expand their businesses in a lot of different ways.
Firstly, this meant they weren’t inhibited by physical barriers anymore. Without expanding their offices or traveling, they could facilitate a lot of clients from all over the world. This allowed them to expand their markets on a global scale, and still be protected by law.
Secondly, e-signs allowed the companies to cut down on major costs. Previously, companies had to ship documents or travel to other destinations in order to get contracts signed. Now they could merely fax the documents over. Recently, people have merely sent it via email and used online PDF editors to sign the documents.
They have also been able to cut down on the use of paper. This saves the company a lot of money. An average employee uses 10,000 sheets of paper a year and only looks at 40% once before throwing it away. This means that companies create a lot of waste in terms of paper. This can create a lot of costs for the company that is other unnecessary.
It is also really environmentally friendly to opt for paperless options. This can also help build the reputation of the company as green and sustainable. A lot of customers prefer to invest in such brand names since it means that these firms are responsible and sustainable.
E-signatures also have a lot of security features like authentication features and comparing signs. This means that they have now become a far more reliable option than paper as well. Paper contracts and documents can easily be destroyed or lost. However, it is easier to protect and record electronic transfers and contracts.