Money that you’re lending from someone is extra funding you’re getting for your business, for your company. It’s essentially called ‘external capital’ – external since it’s not paid into the company by the owners and capital since it’s funds given to be used either for investing, for financing everyday activities etc. It’s also said that a healthy company is using about 2/3 of ‘external capital’ and 1/3 of its own capital (that is capital paid into and not taken out as dividends by the owners). 

Regardless however, the question of where you would disclose those cash flows on your company’s statement of cash flows when presenting one. Loans received are not part of your income statement and moreover, they are not connected to operations as such, at least not directly.

If you think about it, money borrowed is supporting your operations, so it’s not directly cash flows from operating activities, but financing activities, since as the word ‘financing’ means, you’re getting money to use it for something. That is, your company’s business operations are being financed.

So in short, money borrowed (inflow of cash) and loans repaid (outflow of cash) are always shown as part of cash flows from financing activities.