SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549

                                 SCHEDULE 13G/A

                    Under the Securities Exchange Act of 1934
                                (Amendment No. 5)


                           MicroFinancial Incorporated
                           ---------------------------
                                (Name of Issuer)


                                  Common Stock
                                  ------------
                         (Title of Class of Securities)


                                   595072 1 09
                                   -----------
                                 (CUSIP Number)


                                December 31, 2004
                                -----------------
             (Date of Event Which Requires Filing of this Statement)

Check the  appropriate box to designate the rule pursuant to which this Schedule
is filed:

             [_] Rule 13d-1(b)

             [_] Rule 13d-1(c)

             [X] Rule 13d-1(d)

       * The  remainder  of this cover page shall be filled out for a  reporting
       person's initial filing on this form with respect to the subject class of
       securities, and for any subsequent amendment containing information which
       would alter disclosures provided in a prior cover page.

       The information required on the remainder of this cover page shall not be
       deemed to be "filed"  for the  purpose  of  Section 18 of the  Securities
       Exchange Act of 1934 (the "Act") or otherwise  subject to the liabilities
       of that section of the Act, but shall be subject to all other  provisions
       of the Act (however, see the Notes).







CUSIP No. 595072 1 09                   13G                    Page 2 of 5 Pages

1.  NAME OF  REPORTING  PERSONS/I.R.S.  IDENTIFICATION  NOS.  OF  ABOVE  PERSONS
(ENTITIES ONLY)


Torrence C. Harder
------------------

2. CHECK THE APPROPRIATE BOX IF A MEMBER OF A GROUP (SEE INSTRUCTIONS)
                                                                 (a) [_] (b) [_]

Not Applicable.
---------------

3.   SEC USE ONLY

4.   CITIZENSHIP OR PLACE OF ORGANIZATION


United States of America.
-------------------------

NUMBER OF         5.     SOLE VOTING POWER

SHARES                    1,475,184
                          ---------

BENEFICIALLY      6.     SHARED VOTING POWER

OWNED BY                 276,045
                         -------

EACH              7.     SOLE DISPOSITIVE POWER

REPORTING                 1,475,184
                          ---------

PERSON            8.     SHARED DISPOSITIVE POWER

WITH                     276,045
                         -------

9.   AGGREGATE AMOUNT BENEFICIALLY OWNED BY EACH REPORTING PERSON


1,751,229
---------

10. CHECK IF THE AGGREGATE  AMOUNT IN ROW (9) EXCLUDES  CERTAIN  SHARES [-]
    (SEE INSTRUCTIONS)


Not Applicable.
---------------

11.  PERCENT OF CLASS REPRESENTED BY AMOUNT IN ROW (9)


Approximately 13.1% (1)
-----------------------

12.  TYPE OF REPORTING PERSON (SEE INSTRUCTIONS)


IN
--

(1)  Based on 13,183,916  shares of MicroFinancial  Incorporated's  Common Stock
     outstanding as of the report filed on Form 10-Q on November 15, 2004







CUSIP No. 595072 1 09                   13G                    Page 3 of 5 Pages

Item 1(a).  Name of Issuer:


                           MicroFinancial Incorporated
                           ---------------------------
Item 1(b).  Address of Issuer's Principal Executive Offices:


                       10-M Commerce Way, Woburn, MA 01801
                       -----------------------------------
Item 2(a).  Name of Person Filing:


                               Torrence C. Harder
                               ------------------
Item 2(b).  Address of Principal Business Office, or if None, Residence:


                       10-M Commerce Way, Woburn, MA 01801
                       -----------------------------------
Item 2(c).  Citizenship:


                            United States of America
                            ------------------------
Item 2(d).  Title of Class of Securities:


                                  Common Stock
                                  ------------
Item 2(e).  CUSIP Number:


                                   595072 1 09
                                   -----------

Item 3. If this Statement is filed pursuant to Rule 13d-1(b),or 13d-2(b) or (c),
        check whether the person filing is a:

       (a) [_] Broker or dealer registered under Section 15 of the Exchange Act.

       (b) [_] Bank as defined in Section 3(a)(6) of the Exchange Act.

       (c) [_] Insurance  company as defined in Section 3(a)(19) of the Exchange
       Act.

       (d) [_] Investment  company  registered under Section 8 of the Investment
       Company Act.

       (e) [_] An investment adviser in accordance with Rule 13d-1(b)(1)(ii)(E);

       (f) [_] An employee  benefit plan or endowment  fund in  accordance  with
       Rule 13d-1(b)(1)(ii)(F).

       (g) [_] A parent  holding  company or control  person in accordance  with
       Rule 13d-1(b)(1)(ii)(G).

       (h) [_] A savings  association  as defined in Section 3(b) of the Federal
       Deposit Insurance Act.

       (i) [_] A  church  plan  that  is  excluded  from  the  definition  of an
       investment company under Section 3(c)(14) of the Investment Company Act.

       (j) [_] Group, in accordance with Rule 13d-1(b)(1)(ii)(J).

       Not Applicable.







CUSIP No. 595072 1 09                   13G                    Page 4 of 5 Pages

Item 4.    Ownership.

       (a) Amount beneficially owned: 1,751,229
                                      ---------

       Of such 1,751,229  shares of Common Stock (i) the reporting person is the
       direct  beneficial  owner of 1,131,284 shares of Common Stock and 159,500
       shares of Common Stock  issuable  upon the exercise of options which will
       have  vested by  February  28,  2005;  (ii) the  reporting  person is the
       indirect  beneficial  owner of 92,200  shares of  Common  Stock  directly
       beneficially  owned by the Lauren  Elizabeth  Harder Trust,  of which the
       reporting  person's  daughter,  Lauren  Elizabeth  Harder,  is  the  sole
       beneficiary  and over which  shares the  reporting  person  retains  sole
       voting and investment power as the sole trustee of such Trust;  (iii) the
       reporting  person is the indirect  beneficial  owner of 92,200  shares of
       Common Stock directly beneficially owned by the Ashley Jane Harder Trust,
       of which the reporting person's daughter, Ashley Jane Harder, is the sole
       beneficiary  and over which  shares the  reporting  person  retains  sole
       voting and investment  power as the sole trustee of such Trust;  and (iv)
       the reporting  person is the indirect  beneficial owner of 276,045 shares
       of Common Stock directly beneficially owned by Entrepreneurial  Ventures,
       Inc.  ("EVI") and over which shares the reporting  person  retains shared
       voting and  investment  power  through his  ownership in, and position as
       President and Director of, EVI.

       (b) Percent of class: Approximately 13.1% (2)

       (c) Number of shares as to which such person has:

       (i) Sole power to vote or to direct the vote: 1,475,184
                                                     ---------

       (ii) Shared power to vote or to direct the vote: 276,045
                                                        -------

       (iii) Sole power to dispose or to direct the disposition of: 1,475,184
                                                                    ---------

       (iv) Shared power to dispose or to direct the disposition of: 276,045
                                                                     -------

Item 5.  Ownership of Five Percent or Less of a Class.


Not Applicable.
---------------

Item 6.  Ownership of More Than Five Percent on Behalf of Another Person.


Not Applicable.
---------------

Item 7. Identification  and  Classification of the Subsidiary Which Acquired the
        Security Being Reported on by the Parent Holding Company.


Not Applicable.
---------------

Item 8.  Identification and Classification of Members of the Group.


Not Applicable.
---------------

Item 9.  Notice of Dissolution of Group.


Not Applicable.
---------------

Item 10.  Certifications.


Not Applicable.
---------------

(2) Based on 13,183,916  shares of  MicroFinancial  Incorporated's  Common Stock
outstanding as of the report filed on Form 10-Q on November 15, 2004







CUSIP No. 595072 1 09                   13G                    Page 5 of 5 Pages

                                    SIGNATURE

After  reasonable  inquiry and to the best of my knowledge and belief, I certify
that the information set forth in this statement is true, complete and correct.


                                February 7, 2005
                            -------------------------
                                     (Date)


                             /s/ Torrence C. Harder
                            -------------------------
                                   (Signature)


                               Torrence C. Harder
                               ------------------
                                  (Name/Title)


Attention.  Intentional  misstatements  or omissions of fact constitute  federal
criminal violations (see 18 U.S.C. 1001).