<ARTICLE> 5 <LEGEND> THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE DECEMBER 31, 1998 AUDITED CONSOLIDATED FINANCIAL STATEMENTS AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. </LEGEND> <CIK> 0000827230 <NAME> MICROFINANCIAL INCORPORATED <MULTIPLIER> 1 <CURRENCY> U.S. Dollars <PERIOD-TYPE> 12-MOS <FISCAL-YEAR-END> Dec-31-1998 <PERIOD-START> Jan-01-1998 <PERIOD-END> Dec-31-1998 <EXCHANGE-RATE> 1 <CASH> 6,817 <SECURITIES> 0 <RECEIVABLES> 209,534 <ALLOWANCES> 24,850 <INVENTORY> 0 <CURRENT-ASSETS> 0 <PP&E> 13,683 <DEPRECIATION> 6,936 <TOTAL-ASSETS> 210,254 <CURRENT-LIABILITIES> 0 <BONDS> 154,842 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 99 <OTHER-SE> 29,730 <TOTAL-LIABILITY-AND-EQUITY> 210,254 <SALES> 0 <TOTAL-REVENUES> 76,500 <CGS> 0 <TOTAL-COSTS> 25,137 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 19,075 <INTEREST-EXPENSE> 12,154 <INCOME-PRETAX> 20,134 <INCOME-TAX> 8,210 <INCOME-CONTINUING> 0 <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> 11,924 <EPS-PRIMARY> 1.21 <EPS-DILUTED> 1.19