There are times when the business may apply for a loan and this could be from a bank or individual.
How to deal with a loan
Create a new bank account and enter the required details under the account number and account name
You need to choose the Loan & Director Loan Account option as the Account Type.
When the money hits the main bank account, you should explain the entries as a bank transfer from the Directors Loan Account to the relevant bank account.
When dealing with the repayment of the loan, the process is very similar. You would create a transfer from the main current account to the loan account for the value of the repayment.
Any interest payments that are charged should be entered as bank payments from the loan account as and when they arise.