Financial aid improves fishery in Greenland
With financial aid from Royal Greenland, local fishermen can apply for a business loan without interest to upgrade or purchase new fishing equipment or vessels.
Royal Greenland has since 2011 offered local fishermen from Greenland the option to apply for a business loan to improve equipment and vessels or simply replace it with new. In exchange for the business loan to the local fishermen, Royal Greenland benefits from the overall boost to the industry, where new equipment supplies both more and better seafood – something that is in the interest of both parties.
One of the applicants, Nuka Nielsen – a local fisherman from Uummannaq in Greenland – applied for a business loan to purchase a larger dinghy and a new engine;
"I got the opportunity to buy a larger dinghy and a new engine because of the business loan from Royal Greenland. The purchase is a financial gain and means, that I now catch more fish in a shorter period of time", says Nuka Nielsen.
Obtaining a business loan
Prior to applying for a loan, the fisherman must have 25% saved in cash of the total amount borrowed, have no government debt, hold a fishing license and be able to maintain payments on the loan. The application process begins with a conversation with one of Royal Greenland's fishing consultants and ends with receiving the agreed amount. Nuka Nielsen received her loan 3 months after her initial conversation with the consultant and invested in a new dinghy and engine;
"My new dinghy and engine makes a big difference for me and is a great help in my trade. There are definitely economic advantages by applying for the financial aid at Royal Greenland – especially because I don't pay interest on the loan. But the biggest advantage by far is the flexibility to postpone a payment. If I catch less fish I can postpone the payment until my catch has improved."
In 2016 Royal Greenland supplied financial aid to 17 local fishermen and the company's fishing consultants have supplied administrative support as a point of contact between the fishermen and the authorities or other external collaborators. Since 2011 more than 100 loans has been granted to local fishermen.
