Navigate 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.
Similarly, if any supplier bills are paid personally by the director or the payments for sales invoices paid to the director, they can be paid off in Clear Books using the director's loan account.