Importance of electronic signature software in payment collection
Companies not using payment collection with the best electronic signature software have surely missed the opportunity to improve customer satisfaction and cash flow. Some companies still collect payments by sending invoices through email or postal mail. This process consumes longer time which could increase non-payment.
In fact, a survey of 20 million invoices revealed that 64% of small companies regularly experience late payments. Such a case is a distraction from your focus on expanding your business. Can you imagine how small companies would perform with these late payment collections? Surely, after a year or two, they file for bankruptcy or perhaps a change of work status. And this could be avoided in a payment system that automates online document signing.
When companies collect payments with an electronic signature, digital collection payments allow them to be paid right away. This payment collection is beneficial for companies that frequently need to collect payments or service fees because technological integrations will enable them to collect a one-time payment or save a signer’s payment method for use in the future.
What are examples of digital payment collection?
- Universities accepting student payments for school and matriculation fees
- Software companies asking for membership fees
- Manufacturers requesting transaction fees for purchased items
- Construction companies that request payments to obtain licenses
- Government offices requesting vehicle registration, birth certificate, and other fees
- Nongovernmental organizations requesting monetary donations (signer enters the amount to donate)
- Firms in law, accountancy, or insurance are asking for service fees
What are the benefits of digital payment collection?
1. Lowers transaction costs
Most transactions are made with paper checks. Small companies use paper checks 80 to 90% of the time compared to large companies that use 50% only. Payments made on paper are inconvenient for both companies and suppliers. Most companies and their suppliers find collecting and processing paper checks costly, costing roughly $13 simply to submit an invoice and $5 to process a single check. Paper-based payment systems are not only pricey but also cumbersome as a check’s clearance could take up to two weeks. Your business can save money by integrating electronic payment options into the process of payment collection.
2. Saves time and resources
Companies save time by implementing electronic payment solutions for their staff, clients, and management. The conventional method of processing supplier payments takes a long time. With the help of a modern digital payment collection, many time-consuming, repetitive procedures that burden accounts payable departments may be automated, providing the business’ accounts payable department more time to concentrate on crucial, value-adding business areas.
3. Minimizes errors
Companies are ensured that they are paid the appropriate sum if they take steps to reduce errors and eliminate inaccuracies. Digital collection payment allows them to either accept one-time payments of a fixed amount based on a formula entered by the signer or to save the signer’s payment method for future charges or recurring payments.
4. Speeds up payment collection
Compared to traditional payment methods such as writing a check, the transfer of funds is significantly accelerated through electronic payment methods. With the best electronic signature software, users can make payments at any time, from anywhere in the world, eliminating the need to visit banks.
5. Provides the tightest security
Digital payment collections are significantly more time and resource-efficient in addition to being more secure than their more conventional, paper-based equivalents which use a handwritten signature. Companies’ financial transactions can be made more securely using a variety of e-payment methods and systems. Although digital solutions can still be vulnerable to hackers and security breaches, the majority of electronic payment providers also have a large number of data professionals and engineers working to keep payment information secure.
To supplement the tightest security companies’ payment collection is the use of online document signing through electronic signature software.
Is there a way to collect signatures online?
Yes. The lengthy wait times typically associated with handwritten signature requests can be avoided with a digital signature because they can be performed in just a few clicks. You may even be able to collect online signatures through email or text message if the electronic signature app installed supports these methods of data transmission.
Below are some of the best electronic signature software that runs for free.
1. DocuSign
One widely used electronic signature app is DocuSign which offers a free account option. The software runs on different mobile devices that run on either iOS, Android, or Microsoft. It is user-friendly and intuitive. It interfaces with many other third-party apps to allow for more incredible customizability. Additionally, APIs allow you to create tailored interfaces with your current systems, and DocuSign prioritizes security for both data storage and electronic signatures.
2. Eversign
Eversign is a web-based app that provides a complete document management system in addition to managing electronic signature software without charge, which means that sending documents for unlimited signature requests is an essential process with the tool. Additional notable features include secure document storage, a document editor, the capacity to manage documents for various businesses, and personalized templates. The contact management tool is especially helpful for companies that don’t need a full CRM system yet but still need to keep track of document signers’ contact information.
3. SignWell
SignWell is also a web-based electronic signature software that includes one sender seat, one template, and three documents per month in the free version, along with reminders and notifications for unsigned documents. With SignWell, all of the documents a business will send and receive are protected by an encrypted SSL connection, even though this platform is free.
4. Smallpdf
Smallpdf is a mobile device app for android and iOS operating systems. This is popular because users do not need to log in or use a password to access this digital signature software. With Smallpdf’s function, signing documents online is made simple by dragging them onto the page and clicking the “sign” button. One may include their initials, an additional text field, checkboxes, and more with this PDF signature tool. Signers are secured with eIDAS-compliant timestamps and a documented chronology that tracks activity.
5. GetAccept
GetAccept is also electronic signature software for mobile devices that enables CRM solutions to streamline the record-keeping process. Create signature sequences and add mandatory signing fields to documents to make sure that people sign them in the right order. Also, the program makes sure that your documents follow all rules for signing, like eIDAS, ESIGN, and UETA.
The following digital signature software is also highly recommended for added security and features.
1. PandaDoc
For $19 per month, award-winning electronic signature software PandaDoc, available in web and mobile apps, is noted for its streamlined user interface and ease of use. In addition to its electronic signature solution, its document management platform includes drag-and-drop form integration, automated processes, and comprehensive audit histories. The other options are CRM, payment, and file storage app integrations. PandaDoc is a viable option if you’re searching for a complete solution for managing completed documents and contracts, all with an integrated electronic signature capability.
2. HelloSign
Combining customization, client service, and flexible and affordable pricing, Web-based electronic signature software HelloSign offers a distinctive perspective on the electronic signature market for $15 per month. With HelloSign‘s robust API, one may embed and completely brand signing options in one’s documents. The software offers a variety of extensions and connectors and complies with all significant international electronic signature legislation.
3. Adobe Sign
For $14.99 per month, Adobe’s robust electronic signature software platform allows you to control signing procedures from any location and on any device. The Adobe Sign product line is known for its wide range of third-party integrations, including Microsoft, Salesforce, Workday, and others, as well as its focus on international compliance. Adobe Sign’s features support both electronic and digital signatures.
4. Signaturely
Signaturely is a web-based electronic signature software service that allows users to digitally sign documents online quickly and legally for $10 per month. From producing the electronic signature to adding the final signature to the document, Signaturely assists the signers throughout the entire signing process.
5. SignNow
SignNow‘s user-friendly mobile app has received numerous recognitions. Due to the user-friendly design, extensive connectors, and narrowly focused functionality, it is a dependable choice for small enterprises. However, the primary USP of SignNow is its cost. It is without a doubt the most affordable choice on this list, costing $8 per user per month for unlimited document sending and templates. Only $15 per user per month is charged for the “Business Premium” plan, which has more features. Over 40% of Fortune 1000 firms utilize SignNow’s apps for Android and iOS for a good reason. There isn’t a better option if you want to use this electronic signature software on your phone.
Are documents signed online legally binding?
Electronic signature software makes it simple to sign documents with a single click. But do the documents signed online legally binding? Yes. The Electronic Signatures in Global and National Commerce Act, or the “E-Sign Act,” declares that electronic signatures are entirely valid and enforceable. They will endure in court.
From pictures of a signature affixed to an electronic document to PKI-based signatures, electronic signatures cover the complete spectrum of technologies and solutions. This variety of capture methods includes:
- Agreeing the “I Agree” button on a website
- Using your finger to sign on a device
- Filling out an online form by typing in your name or PIN
- Using a secured electronic signature software
Are electronic signatures safe and legally binding?
Compared to paper-based signatures, electronic signatures are more secure. Electronic signatures are supported by numerous levels of security procedures, making them impossible to forge and tamper with, while paper-based signatures are vulnerable to both.
Electronic signatures are therefore recognized by international laws and have legal force. Electronic signatures are recognized in Europe under the Electronic Identification, Authentication and Trust Services (eIDAS) Regulation along with three levels of security: standard, advanced, and electronic.
How do electronic signatures ease payment collection?
The business can make a collection payment request by attaching the Payments tag to any agreement before the other party signs it. The recommended electronic signature above details the functionality of this feature. The additional party inputs payment information to complete the transaction using a credit card, debit card, bank transfer, Apple Pay, or Google Pay. The agreement envelope can then be closed with an authorized payment, and the payment record will be recorded in the agreement’s audit trail. Once the electronic signature is inputted, a payment gateway prompts the completion of the payment processes.
Key takeaways
In today’s fast-growing companies, digitizing the entire transaction calls for smart workflows, automatic payment collection, and signer identity verification. All of these are essentially embedded in the use of electronic signature software.
