loan cash flow

CFA Level I
#1

I see loan made to others are classified under Investing cashflow.

However, debt is classified under Financing Cash flow.

I thought debt and loan are the same?

Very confused with this. Debt might be debentures for a company, & loan may be a bank loan?

#2

Think of making a loan to someone else as being the same as buying someone else’s bond; it’s an investment in a security.