Small–and–medium enterprises (SMEs) cannot thrive using commercial bank loans because such credit is expensive, a financial expert has said.  "The challenge for SMEs has always been lack of financial capital and knowledge on how to grow their businesses. Unfortunately, people think acquiring credit from the banks is the solution, but this is wrong,” Paul Lamontagne, the head Middle East and Africa global banks, said."How can you expand your business when you are using profits, which are supposed to be re-invested in the business, to service loans?” Lamontagne, who was in the country for the East African Business Council summit on Monday, also urged the government to train small business operators on how to raise capital without necessarily acquiring bank loans."SMEs and other private sector players need knowledge-based business innovations and plans that can attract long-term private equities,” Lamontagne said.Livingstone Nkuusi, the senior development officer in charge of small-and-medium enterprises at the Rwanda Development Board, argued that SMEs cannot access credit from commercial banks because they have limited cash flows."Commercial banks focus on one’s capital inflow to predict risks involved in extending credit. This keeps most SMEs on the ‘dark side’ of financial inclusion. Banks are businesses that focus on profit maximisation, while private equities focus on the success of business since they are more or less shareholders in that business,” Nkusi noted.Pitchette Kampeta Sayinzoga, the Ministry of Finance permanent secretary, said government was looking to more alternatives that foster financial inclusion and also help take on board the unbanked SMEs."Helping SMEs financially will not only boost our export industry, but also create jobs for thousands of unemployed youth,” she noted.Sanjeev Anand, the I&M Bank managing director, said banks, like any other businesses, are always looking at ways of mitigating risks and maximising profits."For us to be able to extend credit we to make that money first. One way is to look at which products are bankable,” Anand, who is also the chairman of the Rwanda Bankers Association, pointed out.