I?m currently doing a research project into how most companies handle
draws AND WILL NEED DATA that backs up YOUR response TO SUCCESSFULLY
COMPLETE MY RESEARCH.

Are draws on commission truly loans to salespeople meaning that if the
salesperson leaves the company or is terminated prior to earning it,
is the money owed back to the company?  Or are they really considered
salary and
the company has no recourse?    When is it a salary and when is it a
loan?

1)     How is a draw usually documented by the company and employee or
is it generally not documented?

2)     If a draw is a loan:

a.      how does the company collect if the person leaves or his fired?

b.      What % goes uncollected?

c.      What are the major difference in state laws affecting this situation?

You're likely not getting any answers because there would be no data
to back this up--every company is different.

1) This is generally either in an employee manual (large car
dealership) or in an employment contract (bigger money company with
fewer employees, such as a salesperson or recruiter for a consulting
services firm).

2) This is not called a loan, it's called a "recoverable draw"
(otherwise, it is "non-recoverable draw").
a) This would be stipulated in the document mentioned in #1
b,c) Sorry, can't answer

At very least, perhaps you can search google for the terms
"recoverable draw" and "non-recoverable draw" to continue your
research. And at least my answer is free. :)  Good luck!

thanks dreamboat

It's ALWAYS a loan, unless you have a signed agreement with the
employee as to how it may be deducted from future pay.  In "draw
against commission" sales agreements, this is usually spelled out in
the commission agreement.  Also in the agreement is that you can never
draw more than you have coming to you.  No sales that week?  NO DRAW. 
At least that's how it was in the commission only sales jobs I have
had...

~~Cynthia