In NetSuite, funds transfers are specifically transfers between bank accounts.
Transfers between bank accounts and non-bank accounts are typically achieved with checks or deposits. For example, if you pay off a loan with a check, instead of transferring funds from the checking account to the loan payable account, you write a check and choose the loan payable account for the expense.
Note: When your bank account and loan are with the same bank, you can also use the bank's online system to transfer between operating accounts and loan accounts.
For transferring funds to non-bank accounts, you can make general journal entries.