UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

SCHEDULE 13G

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Rule 13d-1(b)

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Rule 13d-1(c)

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Rule 13d-1(d)

CUSIP No.  595072109

1.

Names of Reporting Persons. I.R.S. Identification Nos. of above persons (entities only)
Alexander Fleiss

2.

Check the Appropriate Box if a Member of a Group (See Instructions)

(a)

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(b)

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3.

SEC Use Only

4.

Citizenship or Place of Organization
United States of America

Number of
Shares
Beneficially
Owned by
Each
Reporting
Person With

5.

Sole Voting Power
656,000

6.

Shared Voting Power 
None.

7.

Sole Dispositive Power 
656,000

8.

Shared Dispositive Power
None.

9.

Aggregate Amount Beneficially Owned by Each Reporting Person
656,000

10.

Check if the Aggregate Amount in Row (9) Excludes Certain Shares (See Instructions)  o

11.

Percent of Class Represented by Amount in Row (9)
4.97%(1)

12.

Type of Reporting Person (See Instructions)
IN

Item 1.

(a)

Name of Issuer
MicroFinancial Incorporated

(b)

Address of Issuer’s Principal Executive Offices
10 M Commerce Way
Woburn, MA 01801

Item 2.

(a)

Name of Person Filing
Alexander Fleiss

(b)

Address of Principal Business Office or, if none, Residence
167 Cherry Lane
Amherst, MA 01002

(c)

Citizenship
United States of America

(d)

Title of Class of Securities
Common Stock, $0.01 par value

(e)

CUSIP Number
595072109

Item 3.

If this statement is filed pursuant to §§240.13d-1(b) or 240.13d-2(b) or (c), check whether the person filing is a:

(a)

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Broker or dealer registered under section 15 of the Act (15 U.S.C. 78o).

(b)

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Bank as defined in section 3(a)(6) of the Act (15 U.S.C. 78c).

(c)

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Insurance company as defined in section 3(a)(19) of the Act (15 U.S.C. 78c).

(d)

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Investment company registered under section 8 of the Investment Company Act of 1940 (15 U.S.C 80a-8).

(e)

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An investment adviser in accordance with §240.13d-1(b)(1)(ii)(E);

(f)

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An employee benefit plan or endowment fund in accordance with §240.13d-1(b)(1)(ii)(F);

(g)

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A parent holding company or control person in accordance with § 240.13d-1(b)(1)(ii)(G);

(h)

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A savings associations as defined in Section 3(b) of the Federal Deposit Insurance Act (12 U.S.C. 1813);

(i)

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A church plan that is excluded from the definition of an investment company under section 3(c)(14) of the Investment Company Act of 1940 (15 U.S.C. 80a-3);

(j)

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Group, in accordance with §240.13d-1(b)(1)(ii)(J).

This statement is not filed pursuant to Rule 13d 1(b), or 13d 2(b), or 13d 2(c).

Item 4.

Ownership

Provide the following information regarding the aggregate number and percentage of the class of securities of the issuer identified in Item 1.

(a)

Amount beneficially owned:   
656,000

On previous Schedule 13G filings, Alexander Fleiss indirectly beneficially owned Karen Fleiss’s shares through voting power pursuant to a power of attorney held by Alexander Fleiss with respect to such shares.  In addition, Alexander Fleiss indirectly beneficially owned KMF Partners shares, of which Karen Fleiss serves as general partner, pursuant to an agreement by which Alexander Fleiss advised KMF Partners concerning the voting of its shares.  As of January 10, 2005, Alexander Fleiss no longer held a power of attorney over Karen Fleiss’s shares and no longer had any agreement with KMF Partners.  In addition, as of such date, Alexander Fleiss has not maintained a residence with Karen Fleiss.

(b)

Percent of class:   
4.97%(2)

(c)

Number of shares as to which the person has:

(i)

Sole power to vote or to direct the vote   
656,000

(ii)

Shared power to vote or to direct the vote    
None.

(iii)

Sole power to dispose or to direct the disposition of   
656,000

(iv)

Shared power to dispose or to direct the disposition of   
None.

Item 5.

Ownership of Five Percent or Less of a Class

If this statement is being filed to report the fact that as of the date hereof the reporting person has ceased to be the beneficial owner of more than five percent of the class of securities, check the following  ý.

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 or Control Person

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.

Certification

By signing below I certify that, to the best of my knowledge and belief, the securities referred to above were acquired and are held in the ordinary course of business and were not acquired and are not held for the purpose of or with the effect of changing or influencing the control of the issuer of the securities and were not acquired and are not held in connection with or as a participant in any transaction having that purpose or effect.

Date

/s/ Alexander Fleiss

Signature

Alexander Fleiss

Name/Title