Electronic Signature: Meaning in a Merchant Cash Advance
An electronic signature is a digital way of signing a contract, such as clicking a signature box in an e-signature platform. Federal law generally gives electronic signatures on business contracts the same legal effect as ink signatures.
What does electronic signature mean?
Almost every merchant cash advance is signed electronically. You receive an email, open the documents, review them and click to sign in each place marked for you. The platform records who signed, when and from where.
Why does electronic signature matter to your business?
An electronic signature is just as binding as signing on paper. The convenience makes it easy to click through quickly, which is exactly why you should slow down and read. The signature is also a record: if there's ever a question about what you agreed to, the platform's audit trail shows it.
Is an electronic signature safe?
Confirm the sender, read on a large screen and never share banking passwords. Legitimate e-signature requests don't ask for them.
How do two signers e-sign?
You usually sign once for the business and once personally for the guarantee. Check each label.
What is the audit trail?
Most platforms produce a certificate of completion showing when the envelope was sent, opened and signed, along with identifying details. If you're ever asked to prove what you signed and when, that certificate is useful. Save it with the signed contract.
Do initials count the same as signatures?
Some documents ask for initials on key pages, like fees or the guarantee. Each initial confirms you saw that page.
Where will you see it?
In the e-signature envelope sent at closing, and in the completed copy emailed to you afterward.
Which terms are related to electronic signature?
The full list is in the glossary. Owners ask about this in What's the difference between an MCA approval and an offer?.
A term on your offer you don't recognize?
Send us the line and we'll tell you what it means. Call 877-FUND-654 with any question. We call you back, usually the same business day, and we always talk with you before we shop your file.