Fishing quota finance is one of the most specialist and least understood areas of UK commercial marine lending - and one where no UK finance broker currently publishes comprehensive guidance. This page fills that gap. Whether you want to borrow against your existing Fixed Quota Allocation (FQA) units, acquire additional quota through a secured facility, or understand how quota finance interacts with your vessel finance, this guide covers everything you need to know.
Doulton Bridging Finance works with specialist lenders who understand FQA security and can structure combined vessel-plus-quota facilities for commercial fishing businesses.
Understanding Fixed Quota Allocation (FQA) Units
Following the UK's withdrawal from the EU Common Fisheries Policy, UK fishing quota is allocated to vessel owners through the Fixed Quota Allocation (FQA) system administered by the Marine Management Organisation (MMO) in England, with equivalent bodies in Scotland (Marine Scotland), Wales (Natural Resources Wales) and Northern Ireland (DAERA).
FQA units work as follows:
- Stock-specific: Each FQA unit relates to a specific fish stock (e.g., "North Sea cod," "Western Channel sole"). A typical trawler operator holds FQA units across multiple stocks.
- Fixed percentage: Each FQA unit represents a fixed percentage of the UK's national quota entitlement for that stock each year. The absolute tonnage varies year-to-year based on ICES advice and Total Allowable Catches (TACs).
- Tradeable: FQA units can be bought, sold or leased (as "swaps" or "rental" quota). This market is facilitated by specialist quota brokers such as Fish Legal, UK Fish Quotas, and others.
- Registered at MMO: FQA unit ownership is recorded on the MMO's FQA register. Transfers are registered with MMO and require completion of transfer forms.
FQA Valuation: How Quota Units Are Priced
FQA unit values vary enormously by species and stock. Key drivers of value:
- Fish price: The higher the market price for the species, the more valuable the quota to catch it.
- ICES scientific advice: When ICES recommends reduced TACs, quota becomes scarcer and more valuable (if the market price holds). When TACs increase, quota can fall in value.
- Demand from the fleet: Some stocks are heavily subscribed; others have few active vessels.
- Post-Brexit quota gains: Species where the UK gained quota share under the TCA have seen stronger FQA values.
Representative FQA unit values (October 2026 - for illustration only):
| Stock | Indicative FQA Value Range | Volatility |
|---|---|---|
| North Sea cod | £8,000–£15,000 per FQA unit | High |
| North Sea haddock | £3,000–£8,000 per FQA unit | Medium |
| Channel sole | £20,000–£45,000 per FQA unit | Medium |
| North Sea plaice | £2,000–£6,000 per FQA unit | Medium |
| Mackerel | £1,500–£4,000 per FQA unit | Low-Medium |
| Nephrops (langoustine) | £4,000–£12,000 per FQA unit | Medium |
Indicative values only. FQA prices fluctuate. Obtain current market valuations from specialist quota brokers before any finance application.
How Lenders Take Security Against FQA Units
Taking security over FQA units requires specialist legal documentation and registration with the MMO. The process typically involves:
- 1FQA valuation: Specialist quota broker or agent provides formal valuation of the borrower's FQA portfolio.
- 2FQA charge documentation: Maritime solicitors draft a formal charge over the specified FQA units.
- 3MMO registration: The charge is noted on the MMO FQA register (equivalent bodies in devolved administrations).
- 4Annual monitoring: Lenders typically require annual confirmation of FQA unit status and market valuation updates.
Lenders active in FQA security include specialist maritime lenders and some Scottish and English regional banks with fishing sector expertise. DBF maintains relationships with these lenders and can identify the most appropriate for your FQA portfolio.
Typical LTVs and Loan Structures
Because FQA values are volatile and influenced by factors beyond the borrower's control (ICES advice, government policy), lenders apply conservative LTVs:
- Standalone FQA lending: 55–65% of independently assessed FQA portfolio value
- Combined vessel + FQA facility: Up to 70% of combined vessel and FQA value
- FQA acquisition finance: 60–70% of purchase price, with existing FQA units providing additional security
Loan terms for FQA finance are typically 3–7 years. Interest rates reflect the specialist nature of the security: expect 8.5–12% p.a. for standalone FQA lending.
Post-Brexit Changes Affecting FQA Finance
The UK-EU Trade and Cooperation Agreement (TCA) fundamentally changed UK fishing quota from 1 January 2021. Key developments relevant to FQA valuation and finance:
- UK gained an additional 25% of quota value from EU waters over a 5-year adjustment period (2021–2026)
- UK vessels can no longer access EU waters under the same conditions as pre-Brexit; EU vessels retain some access to UK waters
- ICES continues to provide independent scientific advice on TACs, which the UK and EU set jointly for shared stocks
- Some stocks (North Sea herring, mackerel) have seen quota changes affecting FQA values in both directions
Any lender or broker offering FQA finance must demonstrate they understand the post-Brexit quota landscape. DBF works exclusively with lenders who have active fishing sector expertise.