8-K

                                  UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION

                             Washington, D.C. 20549


                                 CURRENT REPORT

                     Pursuant to Section 13 or 15(d) of the
                         Securities Exchange Act of 1934


        Date of Report (date of earliest event reported): August 19, 2003
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                           MICROFINANCIAL INCORPORATED
                           ---------------------------
             (Exact name of registrant as specified in its charter)


                                  MASSACHUSETTS
                                  -------------
                 (State or other jurisdiction of incorporation)


                 1-14771                        04-2962824
          -------------------------------------------------------------
          (Commission file number) (IRS Employer Identification Number)


                       10-M Commerce Way, Woburn, MA 01801
                       -----------------------------------
               (Address of principal executive offices) (Zip Code)


        Registrant's telephone number, including area code: 781-994-4800
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                                       N/A
                                       ---
          (Former name or former address, if changed since last report)








Item 7.  Financial Statements and Exhibits.
         ---------------------------------

           Exhibit               Exhibit Title
           -------               -------------

           Exhibit 99            Press Release dated August 19, 2003

Item 12. Results of Operations and Financial Condition
         ---------------------------------------------

         Pursuant to Form 8-K, General Instructions F, Registrant hereby
incorporates by reference the press release attached hereto as Exhibit 99.

                                   SIGNATURES

Pursuant to the requirements of the Securities and Exchange Act of 1934, as
amended, the Registrant has duly caused this report to be signed on its behalf
by the undersigned hereunto duly authorized.

                                MICROFINANCIAL INCORPORATED
                                Registrant



                                By: /s/ James Jackson
                                    ------------------------------------------
                                    James Jackson
                                    Vice President and Chief Financial Officer

Dated: August 19, 2003

EX-99

                                                                      Exhibit 99

For Release August 19, 2003                    Contact:
4:01 pm                                        Richard F. Latour
                                                        President and CEO
                                                        Tel: 781-994-4800


                    MICROFINANCIAL UPDATES FINANCIAL RESULTS
                  - Cash Collection Activity Remains Strong -

Woburn, MA-- August 19, 2003-- MicroFinancial Incorporated (NYSE-MFI), a leader
in Microticket leasing and finance, announced today that portfolio cash receipts
remained strong in the month of July.

Cash received from customers for the month ended July 31, 2003 was $11.7
million. While the securitization notes have been paid down according to their
repayment schedules, the principal payments made on the senior credit facility
have consistently exceeded the amounts required by the long-term bank agreement.
As of August 01, 2003, the senior credit facility debt balance outstanding was
$78.3 million as compared to an expected $83.3 million for the same period as
stated in the bank agreement.

Richard Latour, President and Chief Executive Officer stated, "I am pleased that
we continue to make progress on all of our financial initiatives. These include
being ahead of our lender's target debt balance by approximately $5.0 million
through August 1, 2003 and reducing our total interest bearing debt year to date
by over $72 million. In addition, our debt to worth ratio as measured by total
liabilities less subordinated debt to total equity plus subordinated debt stood
at 1.6 to 1.0 at July 31, 2003.


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.