Digital signature for businesses

Digital signature and electronic signature

Digital signature and electronic signature – are they the same thing? Strictly speaking, no:

• The digital signature is an encryption method that allows for the unequivocal verification of the signer's identity. It is used to create secure electronic signatures. Therefore, it is a technological term.
• The electronic signature (short: E-Signature) refers to the digital signature itself. It is a legal term and therefore has a precise definition. An E-Signature is any connection of electronic data that someone uses to sign. A visual signature may be part of the electronic signature, but it is not necessary.

In everyday language, both terms are often used to refer to signatures on digital documents.

Important questions about electronic signatures for businesses

Benefits of electronic signatures for businesses

With the electronic signature, you can sign business documents of all kinds. It is just as legally valid as a signature on paper – but much more efficient.

The benefits of electronic signatures for businesses are compelling — especially when you use our service from Skribble:

In addition, there are numerous other benefits that digital signatures offer to businesses:

• Save resources: With electronic signatures, significant amounts of paper and CO2 can be saved. This contributes to sustainability in the company.
• Better customer experience: Do you need the customer's signature in the sales process? Signing electronically is much easier and more convenient. This is a benefit that B2B customers particularly appreciate.
• Strengthen your image: Electronic signatures convey to your business partners and customers that values such as sustainability and innovation are important to your company.
• Ensure confidentiality: Instead of sending sensitive documents by mail, only an invitation link is sent. The signed document is stored encrypted on high-security servers.
• Simplified workflows: Getting up, printing, and preparing letters for mailing? With electronic signatures, that's no longer necessary. Employees can handle everything on their computers, completely without media disruptions. And: Skribble you can seamlessly integrate into your familiar systems, such as Google Drive or SAP.

Who benefits from digital signatures for businesses?

What documents can be signed electronically?

The electronic signature is legally valid for all documents, with rare exceptions. It is available in three "security levels," known as e-signature standards. Depending on the document, a lower or higher standard is recommended.

The exceptions concern those documents for which electronic form is excluded by law. These are few individual cases, including, for example, wills and guarantees.

Legally sign with a digital signature for businesses

The legal validity of electronic signatures is established EU-wide in the so-called eIDAS Regulation (in Switzerland, the ZertES applies). This defines three different e-signature standards:

• the simple electronic signature (SES)
• the advanced electronic signature (AES)
• the qualified electronic signature (QES)

The qualified electronic signature (QES) meets the highest standard. It is legally equivalent to a handwritten signature.

As a simple electronic signature, even a scanned signature can be considered valid. Higher requirements apply to advanced and qualified electronic signatures, particularly regarding technology and identification. For instance, the encryption method of the digital signature and a qualified certificate must be used.

Whether you need a simple, advanced, or qualified electronic signature for your business: with Skribble, you get all three e-signature standards from a single source.

The e-signature standards differ in terms of their legal validity and evidential strength:

• Legal validity: The SES and AES are legally valid for documents without statutory formal requirements. The QES is additionally legally valid for documents that require a written form. If electronic form is excluded, none of the e-signatures are legally valid.
• Provenance: In case of dispute, the QES has maximum legal validity in court. The burden of proof is reversed: anyone who questions the authenticity of a QES must provide evidence to support their claim. The AES has high legal validity, while the SES has only limited validity.

Integrating digital signatures into your business

The electronic signature offers significant efficiency gains compared to handwritten signatures. However, there is still a lack of acceptance for electronic signing. Internal and external stakeholders need to be convinced first. The following tips will help you make the transition smoothly.

1) Start small, then gradually expand

It is advisable to start with a selected team and specific documents. Consider:

• Which team in my company is suitable for a pilot project?
• Should I start with a simple or a more complex use case (higher compliance requirements, more signers)?
• Should only internal signers be involved, or also external ones?

Additionally, use cases must be legally clarified in advance.

2) Integrate e-signatures into workflows

The electronic signature process should be optimally integrated into existing workflows. The goal is a comprehensive digital contract management system, where contract creation, sending, signing, and archiving connect seamlessly. Check if it makes sense to integrate the digital signature process into existing systems via a plug-in or API.

3) Choose the right provider

Based on factors such as your company location, business sector, and use cases, it's important to choose a suitable e-signature provider. Here are some questions you can consider when comparing providers:

• Is the application easy and user-friendly?
• Are all three e-signature standards offered (and do I even need them)?
• Do invited individuals need to create their own account?
• Where is the data processed and stored?

4) Create acceptance through knowledge

The lack of acceptance of electronic signatures is often rooted in a lack of knowledge. Basic information, such as the legal validity and security of e-signatures, can help counter this. Skribble provides you with helpful information for each of your steps. Additionally, our e-signing experts are happy to assist you personally – via phone, chat, or email.