Exhibit 99
                                                                      ----------


For Release August 4, 2004                              Contact:
4:01 pm                                                 Richard F. Latour
                                                        President and CEO
                                                        Tel: 781-994-4800


                           MICROFINANCIAL INCORPORATED
                 - Company Continues To Reduce Debt Obligation -



Woburn, MA-- August 4, 2004-- MicroFinancial  Incorporated  (NYSE-MFI) announced
today that the company  continues to reduce its outstanding  debt obligations in
excess of the amounts required by the Company's long-term bank agreement.

As of August 2,  2004,  the senior  credit  facility  has been  reduced to $16.6
million, as compared to an expected $19.5 million for the same period, as stated
in the bank  agreement.  In  addition,  all of the  company's  securitized  debt
obligations have been paid in full.

Richard Latour, President and Chief Executive Officer stated, "I am pleased that
we continue to surpass our required repayments and other financial  expectations
of our bank agreement.  Year to date through August 2, 2004, we have reduced our
total interest bearing debt by approximately $42.0 million."

The Company  continues to seek various  financing,  restructuring  and strategic
alternatives  that will  enable it to  strengthen  its  position  in the leasing
market.


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.