If you have one or more loans for your business, you should create different Loan accounts for each one.
For example, if you have loans to fund for equipment, inventory, or working capital, you should create different Loan accounts
to track the principal you owe for each one.
When you create the Loan account, QuickBooks sets the account type to Other Current Liability.
Liability accounts that QuickBooks creates for you
Setting up a liability account for a loan
QuickBooks account types