loans

I am not sure my post went through , so here it is again. What if the money was paid straight to the loan owed. So you have no money to deposit. Example: I have bank 1; bank 1 has a loan of 10,000 so tractor 1 paid the loan off.  No money was exchanged between myself and the others. I then bought equipment from tractor 1 and the loan they paid off was added into the price of the new equipment/loan through tractor supply. How is this recorded in QBO.