<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