How to record a loan that was paid directly to vendors

Thank you for sharing your concern in the Community, @Vane.

Allow me to help you record loans in QuickBooks Desktop (QBDT).

To properly record the SBA loan and the payments made to the vendors, you would typically follow these steps in your accounting software:

1. Go to the Lists menu, then select Chart of Accounts.
2. Right-click anywhere, then select New.
3. Select Other Account Types, then select the right account type for your loan:
   • Other Current Liability: Use this for short-term loans payable over one year.
   • Long Term Liability: Use this for long-term loans payable over a longer period.
4. Select Continue.
5. Enter the name and number for the account.
6. Select Save & Close.
   
   

Moreover, you can proceed to set up Vendor for the Bank that you need to pay for the loan

1. Go to the Vendors menu, then select Vendor Center.
2. Select New Vendor.
3. Enter the name of the bank or the company you need to pay for the loan.
4. (Optional) Enter other vendor details such as phone number and email address.
5. Select OK.
   
   

After that, create an expense account so you can track interest payments or fees and charges.

1. Go to the Lists menu, then select Chart of Accounts.
2. Right-click anywhere, then select New.
3. Select Expense, then Continue.
4. Enter the account name for the interest payments or fees and charges.
5. Select Save & Close.

To help you further with your liability account, I recommend seeking advice from your accountant. You can visit this website if you don't have one yet: Find a QuickBooks ProAdvisor.

Once you have the liability account, you'll be ready to record the loan: Manual track loans in QuickBooks Desktop.

Moreover, here's an article to help you keep track of every transaction you've entered inside the program: Understand reports.

Please don't hesitate to update us here in the Community for additional questions when setting up a loan with QuickBookse. We're always here to lend a hand.

@Vane 

Make two journal entries as shown below.  You can make one journal entry if you want to record both transactions as of the same date.  Otherwise, make two separate journal entries, each with the proper date.

Then, make a deposit for $5,000 and assign the SBA Loan Payable liability account to it.