Recording receipt of advances (from lender) to be applied to customer invoice

Hi RES005,

Yes, you can create a bank account to record the advance payments. From there, you can use the Receive Payment feature to save the payments as credits to the customers.

Let me guide you with these steps:

To create a bank account:

1. From the Accounting tab, select Chart of Accounts.
2. Click the New button.
3. Fill in th details needed.
4. Enter a descriptive name of the account to easily identify it.
5. Select Save and Close. 

From there, use the Receive Payment option to record the transctions:

You can check this article for more guide in managing your transactions: Help Articles page.

Get back to me if there's anything else you need about making bank transfer in QBO. Just leave a comment below, and I'll get back to you.

Thanks.  I had another thought which I think may be more appropriate.  These advances are in effect as yet unearned income, which when realized will be booked through the individual customer invoices, likely via journal entry.  Perhaps it is more appropriate, rather than create a fictitious bank account, to book to Unearned Income, and then at the later date journal from Unearned Income to the downstream client invoice