I'm having trouble with the square loan appearing as a debt after it has been paid through daily sales

I've got your back in analyzing Square transactions posted to QuickBooks Online (QBO),  @dazzlingsweetshop. This way, we can determine why certain transactions or information are posted differently from what we expect. Let's take the time to read the information below.

When Square sends a payout to your bank account, it includes other transactions, such as Square Capital Payments or Square Loan Payments. These transactions are available in the Payout section, Funds in this payout. When you add a Payout to your books, the app records a bank deposit and shows these transactions in the Add funds to this deposit section of that deposit.

Moreover, you can review your transactions or make quick changes directly from your Chart of Accounts (COA) to keep it accurate and avoid discrepancies in your books.

Let me know if you have additional questions about managing transactions synced to QuickBooks. I'm always around to lend a hand for help. Take care!