Exhibit 99(b)


Press Release


      MicroFinancial Announces New Business Strategy To Leverage Technology
                             And Servicing Platform

                 Management De-emphasizing New Loan Originations



WALTHAM, Mass.--Oct. 11, 2002--MicroFinancial  Incorporated (NYSE-MFI), a leader
in  Microticket  leasing  and  finance,  announced  a new  business  strategy to
leverage the Company's technology and loan servicing platform.

As part of this new business strategy, in recognition of the difficult financing
environment,   management   intends  to   immediately   de-emphasize   new  loan
originations until new financing solutions are secured.

Richard  Latour,  President  and Chief  Operating  Officer  stated,  "Based on a
thorough analysis of our strategic  business strengths and the current financing
environment, we have determined it is in our best interests to pursue a business
strategy that leverages our core technology and services  platform.  The Company
will simultaneously continue to collect on our existing portfolio. Our intent is
to reduce new lease  originations  and focus on a better credit quality  lessee.
Credit quality in the current  lending  environment  has caused some of our core
microticket financing business to become unattractive.  As we re-prioritized our
business objectives,  we determined it was in the best interests of shareholders
to focus on our core strengths in an effort to maximize shareholder returns."

The Company's new business  strategy will  de-emphasize  loan  originations  and
result in  approximately  a 31%  reduction in the  workforce  in this area.  The
Company's  collection,  servicing and technology staff will  essentially  remain
unaffected.

The  Company's  existing  revolving  credit  facilities  have been  converted to
three-year term loans, as provided for under the existing agreements.

Management's  goal is to create long term  shareholder  value by  balancing  the
pursuit of several strategic  alternatives over the next three years,  including
the continued  collection of the existing  portfolio,  focusing the  Microticket
leasing business on better quality lessees, and seeking to secure new financing.

MicroFinancial  will host a teleconference  and webcast today at 9:00 am ET. The
webcast can be located at  www.microfinancial.com  under the investor  relations
section of the website.

MicroFinancial  will report third quarter earnings on October 23, 2002 after the
market closes and host a  teleconference  and webcast at 5:00 pm ET. The webcast
can be located at www.microfinancial.com under the investor relations section of
the website.

MicroFinancial  Inc.  (NYSE:  MFI),  headquartered  in  Waltham,  MA,  and  with
additional locations in Woburn, MA and Herndon, VA, is a financial  intermediary
specializing in leasing and financing for products in the $500 to $10,000 range.
The company has been in operation  since 1986 and has been  profitable each year
since 1987.

Statements  in this  release  that are not  historical  facts and in  particular
statements in this release relating to anticipated results of the implementation
of the Company's new business  strategy,  are  forward-looking  statements  made
pursuant to the safe harbor  provisions  of the  Private  Securities  Litigation
Reform  Act of 1995.  In  addition,  words  such as  "believes,"  "anticipates,"
`"expects,"   "views,  "  and  similar  expressions  are  intended  to  identify
forward-looking  statements.  The Company  cautions  that a number of  important
factors could cause actual results to differ  materially from those expressed in
any  forward-looking  statements  made by or on behalf of the  Company.  Readers
should not place undue reliance on forward-looking statements, which reflect the
management's  view  only  as of the  date  hereof.  The  Company  undertakes  no
obligation  to  publicly  revise  these  forward-looking  statements  to reflect
subsequent  events or  circumstances.  The Company cannot assure that it will be
able to anticipate or respond timely to changes which could adversely affect its
liquidity  or  operating  results  in one or more  fiscal  quarters.  Results of
operations in any past period should not be considered  indicative of results to
be expected in future periods.  Fluctuations in operating  results may result in
fluctuations  in the price of the Company's  common  stock.  For a more complete
description of the prominent risks and  uncertainties  inherent in the Company's
business,  see the risk factors  described in documents  the Company  files from
time to time with the Securities and Exchange Commission.

Contact:
     MicroFinancial Incorporated, Waltham
     Richard F. Latour, 781/890-0177
     Fax: 781/890-1368