eSign Business Resources

What Is an Electronic Signature?

An electronic signature—or e-signature—is a legal, efficient way to sign documents digitally. Discover how electronic signatures work, why businesses trust them, and how to start using them today.

What Is an Electronic Signature?

Understanding Electronic Signatures

The modern standard for document signing

An electronic signature is any electronic indication of intent to agree to or approve a document. Whether you're typing your name at the bottom of an email, clicking an "I Accept" button on a website, or drawing your signature on a touchscreen, you're creating an electronic signature. The terms e-signature and electronic signature are used interchangeably.

Electronic signatures have transformed how businesses operate. What once required printing, signing, scanning, mailing, and filing can now be completed in minutes from any device. This shift has accelerated deal cycles, reduced costs, and improved the experience for everyone involved in document transactions.

Laws like the ESIGN Act in the United States and eIDAS in the European Union establish that properly executed electronic signatures carry the same legal weight as handwritten signatures. This legal foundation has enabled organizations worldwide to adopt electronic signing with confidence.

In this guide, you'll learn how electronic signatures work, explore different types of e-signatures, understand security and legal considerations, and discover how to choose the right solution for your needs. Whether you're signing your first document or evaluating platforms for your organization, this resource will help you move forward with clarity.

Business professional signing document on tablet

How do electronic signatures work?

Electronic signatures capture a person's intent to agree to or approve the contents of a document. The process typically involves three key elements: the signer's identity, their intent to sign, and a secure record of the transaction.

  • Document preparation: The sender uploads a document and places signature fields where signers need to sign
  • Signer authentication: Signers verify their identity through email access, SMS codes, or other authentication methods
  • Signature capture: Signers create their signature by typing, drawing, or uploading an image
  • Document sealing: The signed document is sealed to prevent tampering
  • Audit trail creation: A detailed record captures who signed, when, from what device, and other relevant details

Professional eSign platforms like Foxit eSign automate this entire process, making it simple to send documents, collect signatures, and maintain compliance records.

Different signature methods illustrated

What types of electronic signatures exist?

Electronic signatures exist along a spectrum of assurance levels, each suited to different use cases. Understanding these types helps you choose the right approach for your documents.

  • Simple electronic signatures (SES): Basic e-signatures like typing your name, clicking "I agree," or drawing a signature. Suitable for low-risk internal documents and everyday agreements.
  • Advanced electronic signatures (AES): Linked uniquely to the signer and created using data under their sole control. Provides stronger identity assurance for business contracts and compliance needs.
  • Qualified electronic signatures (QES): The highest level under eIDAS, created using a qualified signature creation device and certificate. Required for specific regulated transactions in the EU.
  • Digital signatures: A specific type that uses cryptographic certificates to verify identity and document integrity. Learn more on our digital signatures page.

Most business documents work well with simple or advanced electronic signatures. Qualified signatures are typically reserved for highly regulated industries or specific legal requirements in the European Union.

Legal scales and security concept

Are electronic signatures legal and secure?

Electronic signatures are legally recognized in virtually every developed country. The legal framework ensures that properly executed e-signatures carry the same weight as handwritten signatures for most documents.

Key legislation establishing legal validity:

  • United States: ESIGN Act (2000) and UETA provide federal and state-level recognition
  • European Union: eIDAS Regulation establishes a comprehensive framework across all member states
  • United Kingdom: Electronic Communications Act 2000 and subsequent regulations
  • Other regions: Most countries have adopted similar legislation recognizing electronic signatures

Professional eSign platforms enhance security through signer authentication, document encryption, tamper-evident sealing, and comprehensive audit trails. These security measures often exceed what's possible with paper documents, providing verifiable evidence of who signed, when, and that the document hasn't been altered.

Business team celebrating efficiency gains

What are the benefits of using electronic signatures?

Organizations that adopt electronic signatures consistently report significant improvements in efficiency, cost savings, and customer experience. The benefits extend across every department and industry.

  • Speed: Documents that took days or weeks to complete with mail can be signed in minutes. Deals close faster, onboarding accelerates, and approvals no longer stall.
  • Cost reduction: Eliminate printing, paper, postage, and physical storage costs. Studies show savings of $6+ per document transaction.
  • Convenience: Sign from any device, anywhere. No need to print, scan, or visit an office.
  • Better tracking: Know exactly where documents are in the signing process, send reminders, and maintain complete visibility.
  • Improved security: Audit trails, authentication, and tamper detection exceed paper document capabilities.
  • Environmental impact: Reduce paper consumption and carbon footprint from shipping and storage.

Explore our business eSign solutions to see how Foxit eSign can streamline your document workflows.

Documents You Can Sign Electronically

Electronic signatures work across departments and industries

Electronic signatures are used for virtually every type of business and personal document. Any document that traditionally required a handwritten signature can typically be signed electronically, with a few specific exceptions.

Business documents: Contracts and agreements, non-disclosure agreements (NDAs), vendor and partner agreements, purchase orders, change orders, and service agreements. Sales teams use e-signatures to close deals faster, while procurement teams streamline vendor onboarding.

HR and employment: Offer letters, employment contracts, onboarding paperwork, benefits enrollment, policy acknowledgments, performance reviews, and separation agreements. HR departments often see the most dramatic efficiency gains from electronic signing.

Finance and legal: Loan applications, account opening forms, investment documents, waivers, releases, and affidavits. Financial services firms use electronic signatures with enhanced authentication for regulatory compliance.

Real estate: Leases, rental agreements, property disclosures, and many transaction documents. Note that some real estate documents (particularly property transfers) may still require notarization or wet signatures depending on jurisdiction.

Why Businesses Choose Electronic Signatures

Key capabilities that make e-signatures essential for modern organizations

Close Deals Faster

Reduce signing time from days to minutes. Documents that once required mailing and waiting can be completed in a single session, accelerating revenue cycles and improving customer experience.

Legally Binding Agreements

Electronic signatures are recognized by courts and regulatory bodies worldwide. The ESIGN Act, eIDAS, and similar legislation ensure your e-signed documents are enforceable.

Enterprise-Grade Security

Professional platforms provide encryption, signer authentication, tamper-evident sealing, and comprehensive audit trails—often exceeding paper document security.

Sign from Anywhere

Signers complete documents from any device—desktop, tablet, or phone. No apps to download, no accounts to create. Just click the link and sign.

Scales with Your Business

From individual documents to bulk sending thousands of agreements, eSign platforms grow with your needs. Templates, workflows, and integrations support enterprise volume.

Complete Audit Trails

Every action is logged: who signed, when, from what IP address, and with what device. This evidence package supports compliance and provides protection in disputes.

Getting Started with Electronic Signatures

Choose the right solution for your needs

Adopting electronic signatures is straightforward. For occasional personal use, free tools or built-in PDF signing features may suffice. For business use—where you need to send documents for signature, track progress, and maintain compliance records—a professional eSign platform is essential.

When evaluating platforms, consider your volume, security requirements, integration needs, and budget. Key features to look for include signer authentication options, template support, workflow automation, mobile signing, and comprehensive audit trails.

Foxit eSign: Professional e-signatures made simple

Foxit eSign makes document signing effortless for businesses of any size. Prepare documents in seconds, send for signature with a few clicks, and track progress in real time. With comprehensive audit trails, multiple signer authentication options, and integrations with popular business tools, Foxit eSign provides the security and efficiency your business needs.

Learn more about Foxit eSign features or explore integrations with your existing tools.

Ready to learn the step-by-step process? Our guide on how to eSign a document walks you through both signing documents you receive and sending documents for others to sign.

Electronic Signature FAQs

Common questions about e-signatures and their use in business

An electronic signature (e-signature) is any electronic indication of intent to agree to or approve a document. This can be as simple as typing your name, clicking an "I agree" button, drawing a signature with your finger or mouse, or using a specialized eSign platform. Electronic signatures are legally recognized in most countries and are used for contracts, agreements, and approvals.
Yes. In the United States, the ESIGN Act (2000) and UETA establish that electronic signatures have the same legal standing as handwritten signatures. In the European Union, eIDAS provides a similar framework. Most other countries have adopted comparable legislation. However, some document types (wills, certain real estate transfers, court documents) may still require wet signatures.
An electronic signature is the broad category encompassing any electronic indication of intent to sign. A digital signature is a specific type of electronic signature that uses cryptographic technology and digital certificates to verify the signer's identity and ensure the document hasn't been altered. All digital signatures are electronic signatures, but not all electronic signatures are digital signatures.
Most eSign platforms offer multiple ways to create your signature: type your name and select a font style, draw your signature using a mouse, trackpad, or touchscreen, or upload an image of your handwritten signature. Once created, your signature is typically saved for future use, making subsequent signing faster.
You can electronically sign most business and personal documents, including contracts, agreements, NDAs, HR documents (offer letters, onboarding forms), sales documents (proposals, purchase orders), real estate documents (leases, disclosures), and financial documents. Some exceptions exist for wills, certain court documents, and specific regulated transactions.
Professional eSign platforms provide multiple security layers: encryption for data in transit and at rest, signer authentication (email, SMS, knowledge-based), tamper-evident document sealing, and comprehensive audit trails. These features often make electronic signatures more secure than paper documents, which can be lost, altered, or forged without detection.
Yes. Professional eSign platforms offer mobile apps or responsive web interfaces that work on smartphones and tablets. You can receive, review, and sign documents from anywhere using your mobile device—making it convenient to complete agreements while traveling or away from your desk.
Upload your document to an eSign platform, add signature fields where signers need to sign, enter signer email addresses, add any additional fields (dates, initials, checkboxes), and send. Signers receive an email notification with a link to review and sign. You're notified when signing is complete, and everyone receives a copy of the signed document.

Ready to streamline your document signing?