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Traffic Light System Finance

Portable traffic light systems cost from around £3,000 for a single battery unit to £80,000+ for a fleet package, and are bought overwhelmingly by traffic management hire companies rather than the contractors who use them on site.

Can you finance a traffic light system?

Yes, traffic light systems are financed as a standard asset purchase, usually on hire purchase or a lease, with the machine itself acting as the security. UK prices typically run £3,000 to £80,000, and most deals are written over 24-84 months with a deposit of around 10-20%. Decisions typically take 24–48 hours. Used machines are financeable too, usually with a shorter term.

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Typical Cost

£3k – £80k

Approval Speed

24–48 hours

Faster on drawdowns against an existing fleet facility

Rates From

5.2% APR

What would a traffic light system cost per month?

£15,000
10%
60 months
9%
£0

Your estimate

Indicative only. Not a quote and not an offer of finance.

Pre-filled with a typical traffic light system price. Indicative only, not a quote.

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Finance options

Hire Purchase (HP)

Rate
5.5% - 10% per annum
Term
24-84 months
Deposit
10-20%
Ownership
Yours at the end
Best for
Hire companies building owned fleet stock rather than paying rental or repeated hire charges themselves

Finance Lease

Rate
5.2% - 9.4% per annum
Term
24-84 months
Deposit
None required
Ownership
Return or buy (balloon payment)
Best for
Fleet operators wanting a large stock purchase kept off a single capital outlay

Multi-Drawdown Asset Finance Facility

Rate
5.5% - 9.9% per annum
Term
Facility agreed annually; each drawdown runs 24-60 months
Deposit
Varies by drawdown
Ownership
Yours at the end of each drawdown
Best for
Hire fleet operators who buy traffic light systems stock repeatedly through the year across many jobs rather than in one single order

Representative example

On a purchase price of £15,000: a 10% deposit of £1,500, then 48 monthly payments of £316 at 5.9% APR representative (fixed). Total amount payable £16,668, including the deposit. The rate you are offered depends on your business and the asset.

What buyers actually specify

Guide prices for sizing a finance agreement, not quotes. Manufacturers in this market mostly price on application, so where a current UK list price could not be confirmed the row describes a specification class rather than naming a model. Your supplier quote is what the agreement is written against.

Machine or specification Guide price Type
Single Portable Traffic Light Unit (Battery) £3,000 - £5,500 Battery Traffic Light
Two or Three-Way Portable Traffic Light Set £7,000 - £14,000 Multi-Way Light Set
Solar-Powered Traffic Light Set £9,000 - £16,000 Solar Traffic Light Set
Multi-Set Fleet Package (10+ units) £40,000 - £80,000 Fleet Stock Package

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Tax benefits

A portable traffic light system bought by a hire company is treated as plant and machinery, so it qualifies for the Annual Investment Allowance (AIA), letting the business deduct the cost from taxable profits in the year each unit is bought, up to the current £1,000,000 annual limit across the whole business. Where a fleet is bought through a facility with several drawdowns spread across a financial year, each drawdown is treated as a purchase in its own right for allowance purposes, so a facility structure does not reduce what a growing fleet can claim. Under a Finance Lease you do not own the asset, so payments are instead deducted as a business expense rather than claimed as an allowance. Always confirm the treatment with your accountant before agreeing a facility structure.

Market context

Portable traffic light systems are bought almost entirely by traffic management hire companies, who supply and operate them on behalf of contractors and utilities carrying out roadworks, rather than by the businesses whose sites the lights control. A hire company's credit case rests on fleet utilisation across many jobs running concurrently across a region rather than on the value of any single contract, and demand for lights is driven by scheduled roadworks and utility programmes rather than one customer's project. Because a hire operator buys new sets and replaces older units on a rolling basis rather than in one large order, lenders in this sector often prefer a facility structured to fund repeated fleet purchases as stock is grown or refreshed. Replacement is generally driven by battery and solar panel degradation and wear to the lamp head and control unit from constant site use, and a secondhand market exists for ex-fleet units sold on once an operator upgrades its stock.

Bad credit?

Several of our 200+ lenders specialise in businesses with imperfect credit histories. You may need a larger deposit or personal guarantee, but options exist. Checking your options here does not affect your credit score, because we do not run a credit search to match you. A lender will run their own checks only if you decide to apply.

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Frequently asked questions

Why do traffic management hire companies buy nearly all portable traffic light systems?
A contractor carrying out roadworks almost always hires traffic light control from a specialist rather than buying and operating it themselves, since operating temporary traffic lights safely and to the required standard is a specialist service in its own right. That means the buyer financing light sets is nearly always the traffic management hire company supplying that service, whose credit case depends on how many sets are working across its region at any given time, not on any single roadworks contract.
Can a fleet of traffic light sets be financed through one facility rather than one agreement per set?
Yes. Many lenders serving traffic management hire companies will agree a facility upfront and release drawdowns as new sets are bought, whether that is growing the fleet to cover more concurrent jobs or replacing older units as they reach the end of their working life. This suits a business whose buying tracks roadworks demand through the year rather than a single planned purchase.
Can I finance used or ex-fleet traffic light sets?
Yes. Used sets are commonly financed, particularly by smaller or newer traffic management operators building out a fleet without the cost of buying entirely new stock. A lender will usually want confirmation the battery or solar system, lamp head and control unit have been checked, since these are the components most likely to need attention on an older set. Buying used remains a sensible way to access a traffic light system without the full cost of a new unit, provided the condition and history are clearly documented and shared with the lender before you commit to a purchase.
What deposit is needed for traffic light system finance?
Hire Purchase typically asks for a 10-20% deposit, while a Finance Lease or a drawdown against an existing fleet facility usually requires none. Because sets are often bought in batches rather than singly, an established operator with a trading history can often negotiate on deposit across the whole batch rather than on a per-unit basis. Your broker can confirm the exact figure a specific lender will ask for once they know the traffic light system's age, condition and your business's trading history, since these are the main factors that move the deposit up or down from the typical range quoted here.
How quickly can traffic light system finance be approved?
Straightforward applications are usually approved within 24 to 48 hours, and drawdowns against an existing facility are typically faster still. A new facility for a business entering traffic management hire, or a large fleet package covering ten or more sets, will generally take a little longer while the lender reviews the full scale of the purchase. Having your last set of accounts, bank statements and a clear supplier quote ready before you apply is the single biggest thing you can do to keep a traffic light system application moving at that pace, since most delays come from a lender waiting on paperwork rather than from the credit decision itself.

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