Exhibit 99



For Immediate Release                                Contact:  Richard F. Latour
                                                               President and CEO
                                                               Tel: 781-994-4800



                           MICROFINANCIAL INCORPORATED
                 - Company Continues To Reduce Debt Obligation -

Woburn, MA-- June 2, 2004--  MicroFinancial  Incorporated  (NYSE-MFI)  announced
today that the company continues to reduce its outstanding debt obligations.  As
of June 1, 2004 the  outstanding  debt balance has been reduced in excess of the
amounts required by the Company's long-term bank agreement.

As of June 1, 2004,  the senior credit  facility debt balance was $26.1 million,
as compared to an expected  $29.6 million for the same period,  as stated in the
bank agreement.  In addition,  the securitized  debt obligation has been paid in
full.

Richard Latour,  President and Chief Executive  Officer stated,  "We continue to
surpass our required  repayments and other  financial  expectations  of our bank
agreement.  This  includes  surpassing  our  lender's  target  debt  balance  by
approximately  $3.5 million through June 1, 2004 and reducing our total interest
bearing debt year to date by over $32 million."

About Microfinancial

MicroFinancial  Inc. (NYSE:  MFI),  headquartered in Woburn,  MA, 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.


Statements  in this release that are not  historical  facts 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
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.