Ensuring you are utilizing the best business practices and techniques to help your customers in the equipment leasing and finance business is an integral part of being a lender. Digital signatures and a digital signing process are great ways to help deliver an excellent experience for your customers and help protect your business. When you start digital, it makes it much easier to stay digital through the entire lending process.
What is a digital signature?
Digital signatures were introduced over twenty years ago when the UETA (Uniform Electronic Transaction Act) and ICC Model Law were signed into being. These rules allowed states to adopt electronic documents and signatures rather than using traditional “wet” signatures.
To break it down, an electronic signature is any electronic symbol, sound, or process associated with a record or contract signing or has been executed or adopted with the intent to sign a record. These electronic records are then stored electronically rather than on paper.
While an electronic signature typically involves signing a name or initialing on an electronic document, other ways exist to record a digital signature. You can apply a symbol or sound file on the document or check a box acknowledging your approval and “signature” on the electronic document. All these methods are legal under the UETA and ICC Model Law.
Electronic signatures are helpful for equipment lenders in today’s modern, digital world. Rather than requiring someone to come into your business in person and sign a paper or find access to a scanner or fax machine, they can sign their name electronically and quickly return the document to you. This reduces wasted time and long, in-person meetings and allows you to become more agile and mobile while accessing a broader customer base.
How can eSignature benefit your digital strategy?
There are a few key reasons why eSignature can significantly benefit your digital strategy. The first is the improved efficiency you get from using digital signatures. Rather than scheduling meetings and booking appointments weeks out and hoping no one has a schedule change, you can electronically send a document and get a signature back within the same day.
eSignatures also help you reduce the cost of printing and purchasing office supplies. A paperless signature positively impacts internal spending. You can also save money by moving through your processes faster and avoiding the costs of in-person meetings and administrative fees.
Another significant benefit is the enhanced security that online signing provides. You can securely send a document online and verify the signature, reducing things like forged signatures and identity theft. Overall, electronic signatures improve the experience customers have with your business. They can sign documents from the security of their own home and save time from traveling or paying for mailing fees.
Integrating eSignature into your digital strategy
To integrate eSignature into your current business and digital strategy, you need to begin by choosing a document signing solution. There are a few options out there, so pick the one that works best for your business and make sure that it ensures compliance with all legal and regulatory requirements in your state.
