A virtual data room (VDR) is an online repository for sharing confidential business documents. VDRs unlike traditional filing cabinets, are secure and only authorized users are able to access them. This is advantageous for businesses that collaborate on projects with several parties and need to share files without a fear of theft or access by someone else. For example, contractors involved in building contracts for services or construction often collaborate to exchange contracts and other documents that are vital for sustaining business relationships. These documents can be accessed from a VDR remotely and can easily be updated by all parties to reflect latest changes.
Businesses can select from the various features offered by various VDR providers, based on the project’s requirements. Some options include advanced document management features like drag-and drop, auto indexing, automated index numbers and fence view, dynamic watermarking and more. These tools are aimed at allowing users to build and maintain a tidy structure for their folders, with a solid file index quickly. Other features include the option to share folders and files via email or direct link with multilingual capabilities and a user-friendly interface.
Additionally, many VDR providers also provide additional support services that are included with their virtual data room. These include consulting and training, and a dedicated support personnel available round the clock to answer questions. These additional functions can cut down the amount of time and cost required for a project be completed. They can also cut the overall transaction time by up to three months due to the automation of contracts, process standardizedization and rapid communication between all parties.