Wet Signature vs. Electronic Signature: Which is Right for Your Business?

Helpful Summary

• Overview: This article helps business owners decide between traditional handwritten signatures (wet signatures) and digital signatures by comparing their benefits and drawbacks.
• Why trust us: At SignWell, we provide secure, legally binding e-signatures that integrate with over 5,000 apps, demonstrating our reliability and effectiveness.
• Why it matters: Understanding the differences between wet and electronic signatures can help small businesses improve efficiency, reduce costs, enhance security, and support environmental sustainability.
• Action points: Evaluate your document needs, volume, budget, client preferences, and environmental goals to choose between wet and electronic signatures. For efficiency and cost savings, consider using a platform like SignWell for digital signatures.
• Further research: Explore e-signature legalities in your region and assess various e-signature platforms to find the best fit for your business needs.

Wondering Whether to Use Wet Signatures or Electronic Signatures?

As a small business owner, you’ve likely encountered situations where signing documents quickly was essential. Wet signatures (traditional handwritten signatures) have been used for centuries. However, electronic signatures (e-signatures) are becoming an increasingly popular and accepted alternative.

Studies show that companies using electronic signatures experience an 85% increase in productivity. Despite this, concerns about cost and security may make you question whether e-signatures are the right choice for your small business.

This guide explores the differences between traditional wet signatures and electronic signatures, providing insights to help you make an informed decision.

Why Listen to Us?

At SignWell, we excel in revolutionizing how businesses manage document signing. With a proven track record of supporting over 61,000 companies, we specialize in optimizing workflows, minimizing errors, and enhancing security through structured signing processes.

What sets us apart is our certifications and adherence to HIPAA, SOC 2 Type 2, ESIGN, and eIDAS standards, ensuring that our platform is a secure option for handling confidential data. From small businesses to large corporations, our clients have successfully streamlined their signing processes, resulting in quicker transactions and improved organizational outcomes.

What Is a Wet Signature?

A wet signature is the traditional method of signing a document using ink, where you physically write your signature on the document. This practice has been in use for centuries and remains common today. 

Traditionally, people sign documents in stylized handwriting, though some cultures also use seals and signet rings for added authenticity. The term “wet” indicates that the ink or wax used in the signing process needs time to dry.

Interestingly, a wet signature doesn’t have to be a person’s name. According to the U.S. Uniform Commercial Code, signatures can be anything, and you can make them manually or with a device.

Key Aspects of Wet Signatures:

• Physical Presence: The signer must be physically present to sign the document.
• Tangible Evidence: The signed document provides a physical piece of evidence that can be stored and retrieved.

Advantages of Using Wet Signatures

Legal Recognition 

Wet signatures have long been accepted as valid and binding in court. Their historical usage and widespread familiarity make them universally recognized. According to the Uniform Commercial Code, a wet signature is legally binding across all 50 states in the U.S.

Tangible Proof 

A wet signature offers a physical form of validation. The signed document can be stored in a file cabinet for future reference, providing a sense of security and permanence.

Personal Touch 

A handwritten signature adds a personal touch to documents, conveying authenticity and commitment. In certain situations, such as signing a heartfelt letter or personal note, a handwritten signature provides a unique and meaningful touch.

No Technology Required 

Wet signatures don’t require any special technology or devices—just a pen and paper. This makes them accessible to everyone, regardless of their tech proficiency.

Immediate Completion 

When both parties are present, signing with a wet signature allows for the immediate completion of the document, eliminating the need for delays caused by emails or digital confirmations.

Disadvantages of Using Wet Signatures

Time-Consuming 

Collecting physical signatures can be time-consuming. The process of printing, signing, scanning, and mailing documents can extend over days or even weeks.

Storage Issues 

Physical documents require storage space. Over time, these documents can accumulate, necessitating careful organization and secure storage to prevent loss or damage.

Lack of Security 

Wet signatures are vulnerable to forgery. Without advanced verification methods, ensuring the authenticity of a wet signature can be challenging.

Not Environmentally Friendly 

Using paper for wet signatures contributes to environmental waste. Given the volume of documents businesses manage, paper consumption can quickly add up.

Geographical Limitations 

If parties are located in different places, obtaining wet signatures can involve additional steps, such as mailing, which can further delay the process.

What Is an Electronic Signature?

An electronic signature, or e-signature, is a digital method for signing documents, indicating agreement electronically rather than with a handwritten mark.

Key aspects include:

• Remote Signing: E-signatures enable signers to sign documents from any location, eliminating the need for physical presence.
• Speed and Efficiency: Documents can be signed and returned within minutes, significantly streamlining the process.
• Security: E-signatures come with advanced security features, such as encryption and audit trails, making them more secure than traditional signatures.

Platforms like SignWell facilitate this process by allowing users to sign documents online. Our platform provides legally binding e-signatures that comply with both U.S. and international e-signature laws, ensuring global legal validity. Users can also benefit from customizable templates for frequently used documents, which helps streamline their workflow.

Additionally, our platform offers real-time document tracking with status updates and automated reminders for unsigned documents, enhancing efficiency and reducing the likelihood of missed signatures.

Advantages of Using Electronic Signatures

Efficiency 

Electronic signatures significantly speed up the signing process. Documents can be signed and returned within minutes, regardless of the signers’ locations. According to a report by LunarPen, businesses using e-signatures experience an 80% faster turnaround time. 

SignWell’s compatibility with over 5,000 apps, including Zapier, Google Drive, and Dropbox, facilitates seamless integration into existing workflows. Additionally, our platform’s API access allows developers to embed e-signature capabilities into other applications, offering greater flexibility.

Cost Savings 

Going digital eliminates the costs associated with printing, shipping, and storing physical documents. A study by Forrester found that companies save an average of $20 per document by using electronic signatures.

Enhanced Security 

E-signature platforms like SignWell provide robust security features, including encryption and tamper-proof audit trails. This ensures the authenticity of signatures and the identity of the signer.

Environmental Benefits 

Switching to electronic signatures reduces paper waste, making it an environmentally friendly option. This aligns with the growing trend toward sustainable business practices.

Convenience 

With electronic signatures, you can sign documents from anywhere, at any time. This flexibility is particularly beneficial for remote teams and businesses with global clients.

Disadvantages of Using Electronic Signatures

Technical Challenges

Some users might face technical difficulties or lack the digital literacy required to use e-signature platforms effectively.

Initial Setup Costs

There might be initial costs associated with setting up electronic signature software. However, these costs are often offset by long-term savings.

Regulatory Concerns

While e-signatures are legally recognized in many countries, specific regulations or exceptions might still require wet signatures. It’s crucial to be informed about the legal landscape in your region.

Dependence on Technology

Electronic signatures rely on technology and internet access. Any technical glitch or lack of connectivity can hinder the signing process.

Security Concerns

While e-signature platforms are generally secure, they are not completely immune to cyber threats. It’s essential to use reputable platforms like SignWell to mitigate these risks.

Wet Signature vs. Electronic Signature: Side-by-Side Comparison

Wet Signature vs. Electronic Signature: How Do You Choose?

Choosing between wet and electronic signatures depends on your business needs. Here are some considerations to help you decide:

• Nature of the Document: For legal, official, or highly sensitive documents, wet signatures might provide that extra level of assurance.
• Volume of Documents: If your business handles a high volume of documents, electronic signatures can save time and reduce logistical headaches.
• Budget Constraints: Consider the long-term savings of electronic signatures compared to the ongoing costs of paper, ink, and postage.
• Client Preferences: Some clients might prefer one method over the other. Offer flexibility to accommodate their preferences.
• Environmental Considerations: If sustainability is a priority, electronic signatures are the way to go.

Conclusion

Both wet and electronic signatures have their pros and cons. Wet signatures offer a personal touch and are universally accepted, but they can be slow and cumbersome. Electronic signatures, on the other hand, are efficient, secure, and eco-friendly, though they require some level of digital proficiency and initial setup.

For small business owners, leveraging electronic signatures can streamline operations and reduce costs. SignWell, with our user-friendly platform and robust security features, is an excellent choice for those looking to make the switch.

Ready to experience the benefits of electronic signatures? Try SignWell for free today!