Hi Stuart, great question!
As far as from a financial statement perspective goes, there is no actual difference, for the most part it just affects how you end up posting the transactions.
Accounts setup as loans can only be posted to do by doing an L+ or L- line, and accounts setup as liabilities can only be posted to by doing a D+ or D- line.
System accounts, like the payroll liability accounts, or pst/gst collected accounts are setup as liability accounts by default
Most debts will be setup as loans.
I hope that helps!
