Why do customers not sign contracts on time and how to fix it?

In modern companies, 70-80% of business processes are regulated by contracts. Fast and efficient contracting helps companies expand their partner network and scale.

At the same time, delays and mistakes in the contracting process have a negative impact on business. A contract is a record of agreements between partners. Without a signed contract, no payments, delivery or acceptance of goods or services are made. As a result, business processes slow down and companies suffer financial losses.

What are the main mistakes companies make when concluding contracts? How can they be avoided? Let’s talk about it in this article.

Long contracting cycle

From the moment the contract is drafted to its signing, the partner companies go through several stages:

• negotiations on the key terms of the contract;
• additions and edits;
• internal approval within each company;
• approval of the final version of the contract.

Companies spend a lot of time at each of these stages. According to Weshare, on average, companies spend 20 to 30 days to approve an agreement. This period can increase if company employees make mistakes.

Solution: Signing contracts electronically

Modern online document exchange (ODE) services, such as Vchasno.ODE, provide a full cycle of contract management.

Vchasno.ODE automates all stages of contracting, from drafting to signing. Companies that use the service start cooperation faster and make a profit.

Delays due to manual contract signing

Contract signing is often delayed because the head of one of the contracting companies is on a business trip or sick leave. Even when all responsible persons are in the office, manual signing slows down the transaction. There is always a risk that a paper copy of the contract may get lost in transit.

Solution: Sign the contract with an electronic signature (QES)

You can sign contracts in ODE services remotely, from anywhere in the world. To make the contract legally binding, company executives and managers use electronic signatures.

In the Vchasno.ODE service, it is best to sign a contract using Vchasno.QES, a qualified electronic signature from the Vchasno ecosystem of services. You can sign a contract in a few clicks.

The signature can be applied both in the web office and in the Vchasno mobile application. The app is user-friendly: an executive or manager can put an electronic signature from a smartphone anywhere, regardless of Wi-Fi availability.

Signing is as simple as possible: the entire process takes place in a single application, and the user does not need to confirm the signature via SMS.

Ineffective control of contract approval and signing

Before the contract is sent to the counterparty, it is approved internally. For example, a lease agreement is approved by a lawyer and a commercial director, and then signed by the CEO. Depending on the structure of the company, the type and specifics of the contract, other employees may also approve it: managers, accountants, etc.

Employees take turns reviewing the document. If the company enters into a paper-based agreement, delays in approval may occur when a particular employee is on vacation or business trip. Without proper control, paper contracts can get lost between departments. This significantly increases the approval time.

Solution: Automatic document status tracking

The manager responsible for concluding the contract sees the status of the document, all employees involved in the approval, and deadlines in the Vchasno.ODE service. If there are any delays at any stage, the manager sees it and quickly fixes it.

Delays in approving and signing

Companies spend the most time approving contracts. For this stage to be effective, employees need to know who approves the contract and in what sequence.

Solution: Setting up scenarios for approving and signing contracts in electronic form

In the Vchasno.ODE service, a manager or company executive can set up a route for any electronic document. The system determines the sequence in which employees approve the contract. If several employees sign it, you can also customize the sequence of signatures.

Inconsistent versions

While working on the contract, the contracting companies make changes to it. At the stage of approval within the company, lawyers, managers, and other employees can make changes to the document. The manager responsible for concluding the contract must keep track of all changes to work with the current version.

If a company does not use ODE services, managers usually send contracts to partners by email. They often make mistakes and send outdated versions of contracts, creating financial risks for the company.

Solution: version control in the ODE service

In the Vchasno.ODE service, all versions of the contract are available to the user. The manager selects the current version to send it to the counterparty. If necessary, you can return to the previous version and track changes in the document.

Electronic contracting in the Vchasno.ODE service allows you to control the conclusion of agreements at all stages — from creation to signing. Working in the service, managers avoid mistakes, save time and money. Using Vchasno.ODE, companies quickly conclude contracts and start cooperation.