Question

A draw is an advance that need not be repaid if the commission does not exceed the draw. True or false?

Answer 1

True, for each month throughout the draw period the company will pay the sales representative the draw amount if the sales representative made commissions that are less than the draw amount. the remaining draw amount accumulates from month to month. But when received commissions exceed the draw, this is the case that the extra commissions will be used to repay the outstanding draw. Once the gathered draw is repaid all commissions are compensated to the sales representative.