If a director lends (or borrows) money to (or from) the company, this is accounted for by creating a special, directors loan account in Clear Books.
Navigate to Money > Bank accounts.
Click on Add account button.
Chose the add icon next to Directors loan account.
Enter the Account name and either link the loan account to an existing entity or type New entity into the Entity field so that the system generates an entity for you.
From now on, any money lent by or repaid to, a director can be explained on bank statements using the transfer tab as if their loan account is another bank account.