April 18, 2006
VIA EDGAR AND FACSIMILE
Ms. Angela Connell
Senior Accountant
United States Securities and Exchange Commission
Division of Corporation Finance
Washington D.C. 20549
Re: | MicroFinancial Incorporated |
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| Form 10-K for Fiscal Year Ended December 31, 2004 | |||
| Filed March 30, 2005 |
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| File No. 001-14771 |
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Dear Ms. Connell:
Below please find a response to the comment you had outlined in your Comment Letter dated April 10, 2006.
Note C-Net Investment in Leases, page F-14
1. | The Company will take the necessary actions to improve the current systematic methodology to better comply with SAB Topic 6L in such a way as to more accurately enable us to determine the appropriate amount of allowance for credit losses in future periods. The revised methodology will include procedures that adjust the loss estimation methods in order to reduce the differences between estimated losses and actual subsequent charge-offs, as necessary. |
If you have any questions or would like further information concerning the Company’s response to your comment letter, please do not hesitate to contact me at (781) 994-4800.
Sincerely,
/s/ James R. Jackson, Jr. |
James R. Jackson, Jr.
Vice President and Chief Financial Officer