UNITED STATES
                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D.C. 20549


                                    FORM 10-Q



[x ]     Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
         Exchange Act of 1934

For the period ended                        September 30, 1997
                     -----------------------------------------------------------

[  ]     Transition Report Pursuant to Section 13 or 15(d) of the Securities
         Exchange Act of 1934

For the transition period from                       to
                               ---------------------    ------------------------

Commission File Number                           33-94458
                       ---------------------------------------------------------

                       ICON Cash Flow Partners L.P. Seven
--------------------------------------------------------------------------------
             (Exact name of registrant as specified in its charter)


         Delaware                                             13-3835387
--------------------------------------------------------------------------------
(State or other jurisdiction of                              (IRS Employer
incorporation or organization)                            Identification Number)


              600 Mamaroneck Avenue, Harrison, New York 10528-1632
--------------------------------------------------------------------------------
  (Address of principal executive offices)                        (Zip code)


                                 (914) 698-0600
--------------------------------------------------------------------------------
               Registrant's telephone number, including area code



         Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the  Securities  Exchange  Act of
1934  during  the  preceding  12 months  (or for such  shorter  period  that the
registrant was required to file such reports),  and (2) has been subject to such
filing requirements for the past 90 days.

                                                           [ x] Yes     [  ] No


<PAGE>


PART I  - FINANCIAL INFORMATION
Item 1.  Financial Statements

                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)

                           Consolidated Balance Sheets

                                   (unaudited)
<TABLE>

                                                      September 30,    December 31,
                                                          1997             1996
       Assets

<S>                                                   <C>              <C>          
Cash ..............................................   $   2,215,972    $     698,301
                                                      -------------    -------------


Investment in finance leases
   Minimum rents receivable .......................      63,343,517       15,894,245
   Estimated unguaranteed residual values .........      35,667,353        6,667,481
   Initial direct costs ...........................       2,432,389          869,559
   Unearned income ................................     (18,519,751)      (3,515,258)
   Allowance for doubtful account .................        (155,000)         (65,000)
                                                      -------------    -------------

                                                         82,768,508       19,851,027

Investment in estimated unguaranteed residual value      26,531,664       12,325,000
                                                      -------------    -------------

Net investment in leveraged leases ................      10,222,253        9,980,633
                                                      -------------    -------------

Equity investment in joint ventures ...............       2,044,613             --
                                                      -------------    -------------

Investment in financings
   Receivables due in installments ................         927,413        6,619,755
   Initial direct costs ...........................          16,843          143,565
   Unearned income ................................        (201,160)      (1,271,152)
   Allowance for doubtful account .................         (22,222)         (10,000)
                                                      -------------    -------------

                                                            720,874        5,482,168

Other assets ......................................         778,708          148,941
                                                      -------------    -------------

Total assets ......................................   $ 125,282,592    $  48,486,070
                                                      =============    =============
</TABLE>


<PAGE>



                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)

                           Consolidated Balance Sheets

                                   (unaudited)
<TABLE>


                                                        September 30,     December 31,
                                                            1997              1996

       Liabilities and Partners' Equity

<S>                                                     <C>              <C>          
Notes payable - non-recourse ........................   $  63,005,173    $  11,089,945
Note payable - recourse .............................      23,044,164       12,225,000
Accounts payable - equipment ........................       1,637,837        1,790,717
Accounts payable - General Partner and affiliate, net         415,743          438,297
Accounts payable - other ............................          33,335           54,114
Minority interest in joint venture ..................          19,230           15,955
Security deposits and deferred credits ..............          17,674            6,188
                                                        -------------    -------------
                                                           88,173,157       25,620,216

Commitments and Contingencies

Partners' equity (deficiency)
   General Partner ..................................         (34,433)          (8,694)
   Limited partners (470,085.34 and 275,540.47 units
     outstanding, $100 per unit original
     issue price in 1997 and 1996, respectively) ....      37,143,869       22,874,548
                                                        -------------    -------------

     Total partners' equity .........................      37,109,436       22,865,854
                                                        -------------    -------------

Total liabilities and partners' equity ..............   $ 125,282,592    $  48,486,070
                                                        =============    =============

</TABLE>













See accompanying notes to consolidated financial statements.


<PAGE>


                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)

                      Consolidated Statements of Operations

                                   (unaudited)
<TABLE>

                                           For the Three Months      For the Nine Months
                                            Ended September 30,       Ended September 30,
                                             1997         1996         1997          1996
Revenues

<S>                                       <C>          <C>          <C>          <C>       
   Finance income .....................   $1,414,310   $  191,233   $3,834,516   $  383,865
   Income from leveraged leases, net ..      914,314         --      1,666,627         --
   Income from equity investment
     in joint ventures ................      129,224         --        283,957         --
   Interest income and other ..........       33,399      105,246       73,906      237,066
   Net gain on sales or remarketing
     of equipment .....................         --           --         39,180         --
                                          ----------   ----------   ----------   ----------

   Total revenues .....................    2,491,247      296,479    5,898,186      620,931
                                          ----------   ----------   ----------   ----------

Expenses

   Interest ...........................    1,413,016       77,675    2,902,592      206,360
   Management fees - General Partner ..      416,990       31,763    1,084,619       76,294
   Amortization of initial direct costs      298,935       34,195      904,856       74,175
   Administrative expense
     reimbursements - General Partner .      175,262       16,975      463,634       37,145
   Provision for bad debts ............       75,000         --        150,000         --
   General and administrative .........       44,629        9,581      153,978       31,371
   Minority interest in joint venture .        1,096         --          3,275         --
                                          ----------   ----------   ----------   ----------

   Total expenses .....................    2,424,927      170,189    5,662,954      425,345
                                          ----------   ----------   ----------   ----------

Net income ............................   $   66,320   $  126,290   $  235,232   $  195,586
                                          ==========   ==========   ==========   ==========

Net income allocable to:
   Limited partners ...................   $   65,657   $  125,027   $  232,880   $  193,630
   General Partner ....................          663        1,263        2,352        1,956
                                          ----------   ----------   ----------   ----------

                                          $   66,320   $  126,290   $  235,232   $  195,586
                                          ==========   ==========   ==========   ==========

Weighted average number of limited
   partnership units outstanding ......      450,393      118,537      377,934      118,537
                                          ==========   ==========   ==========   ==========

Net income per weighted average
   limited partnership unit ...........   $      .15   $     1.05   $      .62   $     1.63
                                          ==========   ==========   ==========   ==========
</TABLE>

See accompanying notes to consolidated financial statements.


<PAGE>


                       ICON Cash Flow Partners L. P. Seven
                        (A Delaware Limited Partnership)

             Consolidated Statements of Changes in Partners' Equity

                For the Nine Months Ended September 30, 1997, the
                Year Ended December 31, 1996 and the Period from
                        May 23, 1995 (date of inception)
                              to December 31, 1995
                                   (unaudited)
<TABLE>

                          Limited Partner Distributions
                             Return of    Investment            Limited       General
                              Capital       Income              Partners      Partner      Total
                           (Per weighted average unit)
<S>                            <C>          <C>                <C>            <C>        <C>       
Initial partners'
    capital contribution
    - May 23, 1995                                            $     1,000    $  1,000   $     2,000
                                                              -----------    --------   -----------
                                                          
Balance at                                                
    December 31, 1995                                               1,000       1,000         2,000
                                                          
Refund of initial                                         
    limited partners'                                     
    capital contribution                                           (1,000)        -          (1,000)
                                                          
Proceeds from issuance                                    
    of limited partnership                                
    units (275,540.47 units)                                   27,554,047         -      27,554,047
                                                          
Sales and offering expenses                                    (3,719,796)        -      (3,719,796)
                                                          
Cash distributions                                        
    to partners                $6.14        $2.57              (1,361,099)    (13,749)   (1,374,848)
                                                          
Net income                                                        401,396       4,055       405,451
                                                              -----------    --------   -----------
                                                          
Balance at                                                
    December 31, 1996                                          22,874,548      (8,694)   22,865,854
                                                          
Proceeds from issuance of                                 
    limited partnership units                             
    (194,545.89 units)                                         19,454,589         -      19,454,589
                                                          
Sales and offering expenses                                    (2,626,343)        -      (2,626,343)
                                                          
Limited partnership units                                 
    redeemed (102.71 units)                                       (11,211)        -         (11,211)
                                                          
Cash distributions                                        
    to partners                $5.68        $ .49              (2,780,594)    (28,091)   (2,808,685)
                                                          
Net income                                                        232,880       2,352       235,232
                                                              -----------    --------   -----------
                                                          
Balance at                                                
    September 30, 1997                                        $37,143,869    $(34,433)  $37,109,436
                                                              ===========    ========   ===========
</TABLE>
                                                     
See accompanying notes to consolidated financial statements.


<PAGE>


                       ICON Cash Flow Partners L. P. Seven
                        (A Delaware Limited Partnership)

                      Consolidated Statements of Cash Flows

                     For the Nine Months Ended September 30,

                                   (unaudited)
<TABLE>

                                                                          1997            1996
                                                                          ----            ----
Cash flows from operating activities:
<S>                                                                  <C>             <C>         
   Net income ....................................................   $    235,232    $    195,586
                                                                     ------------    ------------
   Adjustments to reconcile net income to
    net cash provided by operating activities:
      Finance income portion of receivables paid directly
        to lenders by lessees ....................................     (3,565,301)       (254,839)
      Amortization of initial direct costs .......................        904,856          74,175
      Gain on sale of equipment ..................................        (39,180)           --
      Interest expense on non-recourse financing paid
        directly by lessees ......................................      2,722,243         202,765
      Collection of principal  - non-financed receivables ........        486,039         245,605
      Allowance for doubtful accounts ............................        102,222            --
      Distribution from equity investment in joint venture .......      4,889,804            --
      Income from equity investment in joint venture .............       (283,957)           --
      Income from leveraged leases, net ..........................     (1,666,627)           --
      Change in operating assets and liabilities:
         Accounts payable - General Partner and affiliates, net ..        (22,554)
         Accounts payable - other ................................        (20,778)        210,679
         Security deposits and deferred credits ..................         11,486           2,184
         Minority interest in joint venture ......................          3,275            --
         Other assets ............................................       (629,768)        (68,901)
         Other, net ..............................................       (479,230)        (34,121)
                                                                     ------------    ------------

           Total adjustments .....................................      2,412,530         377,547
                                                                     ------------    ------------

        Net cash provided by operating activities ................      2,647,762         573,133
                                                                     ------------    ------------

Cash flows from investing activities:
   Equipment and receivables purchased ...........................    (12,601,899)    (13,334,301)
   Initial direct costs ..........................................     (2,064,530)     (1,675,433)
   Investment in joint venture ...................................       (500,000)           --
   Proceeds from sale of equipment ...............................      2,166,777            --
                                                                     ------------    ------------

         Net cash used in investing activities ...................    (12,999,652)    (15,009,734)
                                                                     ------------    ------------

Cash flows from financing activities:
   Issuance of limited partnership units, net of offering expenses     16,828,246      18,591,229
   Proceeds from note payable affiliate ..........................      4,250,000            --
   Principal payments on loans from affiliate ....................     (4,250,000)           --
   Principal payments on notes payable - recourse ................     (2,150,000)           --
   Cash distributions to partners ................................     (2,808,685)       (842,312)
   Refund of initial limited partners' capital contribution ......           --            (1,000)
                                                                     ------------    ------------

         Net cash provided by financing activities ...............     11,869,561      17,747,917
                                                                     ------------    ------------

Net increase in cash .............................................      1,517,671       3,311,316

Cash at beginning of period ......................................        698,301           2,000
                                                                     ------------    ------------

Cash at end of period ............................................   $  2,215,972    $  3,313,316
                                                                     ============    ============
</TABLE>

See accompanying notes to consolidated financial statements.


<PAGE>


                       ICON Cash Flow Partners L. P. Seven
                        (A Delaware Limited Partnership)

                Consolidated Statements of Cash Flows (continued)

Supplemental Disclosure of Cash Flow Information

      For the nine months ended September 30, 1997 and 1996, non-cash activities
included the following:
<TABLE>

                                                                 1997               1996
                                                                 ----               ----

Fair value of equipment and receivables
<S>                                                        <C>             <C>          
   purchased for debt and payables .....................   $(62,862,382)   $(42,477,028)
Non-recourse notes payable assumed in
   purchase price ......................................     62,862,382      42,465,464
Accounts payable - equipment ...........................           --            11,564

Principal and interest on direct
   finance receivables paid directly
   to lenders by lessees ...............................     15,043,476       1,339,261
Principal and interest on non-recourse
   financing paid directly to lenders
   by lessees ..........................................    (15,043,476)     (1,339,261)

Decrease in investments in finance leases and financings
   due to contributions to joint venture ...............      6,150,460            --
Increase in equity investment in joint venture .........     (6,150,460)           --
                                                           ------------    ------------

                                                           $       --      $       --
                                                           ============    ============
</TABLE>

      Interest  expense of  $2,902,592  and  $206,360  for the nine months ended
September  30,  1997 and 1996  consisted  of  interest  expense on  non-recourse
financing  paid or accrued  directly  to lenders  by lessees of  $2,722,243  and
$202,765, respectively, and other interest of $180,349 and $3,595 respectively.


<PAGE>


                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)

                   Notes to Consolidated Financial Statements

                               September 30, 1996

                                   (unaudited)
1.    Basis of Presentation

      The  financial  statements  of ICON Cash Flow  Partners  L.P.  Seven  (the
"Partnership")  have been prepared  pursuant to the rules and regulations of the
Securities  and  Exchange   Commission  (the  "SEC")  and,  in  the  opinion  of
management,  include  all  adjustments  (consisting  only  of  normal  recurring
accruals)  necessary  for a fair  statement  of income  for each  period  shown.
Certain information and footnote  disclosures  normally included in consolidated
financial  statements  prepared in accordance with generally accepted accounting
principles  have  been  condensed  or  omitted  pursuant  to such SEC  rules and
regulations.  Management believes that the disclosures made are adequate to make
the information  represented not misleading.  The results for the interim period
are  not  necessarily  indicative  of the  results  for  the  full  year.  These
consolidated  financial  statements  should  be read  in  conjunction  with  the
consolidated  financial  statements and notes included in the Partnership's 1996
Annual Report on Form 10-K.

2.    Net Investment in Leveraged Leases

      On August 20, 1996 the partnership acquired, subject to a leveraged lease,
the  residual  interest in an  aircraft.  The  aircraft  is a McDonnell  Douglas
DC-10-30F  currently  on  lease to  Federal  Express.  The  purchase  price  was
$40,973,585, consisting of $6,000,000 in cash and the assumption of non-recourse
senior debt of $26,217,294 and non-recourse junior debt of $8,756,291.

      On December  31,  1996 the  Partnership  acquired,  subject to a leveraged
lease,  the residual  interest in an aircraft.  The aircraft is a 1976 McDonnell
Douglas DC-10-30 currently on lease to Continental Airlines.  The purchase price
was  $11,320,923,  consisting  of  $2,104,262  in  cash  and the  assumption  of
non-recourse senior debt of $9,216,661.

The net investment in leveraged leases as of September 30, 1997 consisted of the
following:

Non-cancelable minimum rents receivable (net of
  principal and interest on non-recourse debt)    $  9,964,073
Estimated unguaranteed residual values ........     24,818,000
Initial direct costs ..........................      1,282,722
Unearned income ...............................    (25,842,542)
                                                  ------------
                                                  $ 10,222,253

      The  non-cancelable  rents are being paid  directly  to the lenders by the
lessees to satisfy the principal and interest on the non-recourse debt assumed.

      Unearned income is recognized  from leveraged  leases over the life of the
lease at a constant rate of return on the positive net investment.



<PAGE>


                       ICON Cash Flow Partners L. P. Seven
                        (A Delaware Limited Partnership)

             Notes to Consolidated Financial Statements - Continued

      Prior to the acquisition of the Federal Express transaction, the free cash
flow,  the rent in  excess of the  senior  debt  payments,  was  financed  by an
affiliated  partnership,  ICON Cash Flow Partners,  L.P., Series D ("Series D"),
(i.e.,  the junior  debt).  On January 29, 1997,  the  Partnership  refinanced a
portion of the junior debt with a third party.

3.    Investment in Joint Venture

      The  Partnership  Agreement  allows  the  Partnership  to  invest in joint
ventures  with other  limited  partnerships  sponsored  by the  General  Partner
provided that the  investment  objectives of the joint  ventures are  consistent
with that of the Partnership.

ICON Cash flow LLC III

      In  December  1996,  the  Partnership  and an  affiliate,  ICON  Cash Flow
Partners,  L.P. Series E ("Series E") formed ICON Cash Flow Partners L.L.C.  III
(?ICON  Cash Flow LLC  III?),  for the  purpose of  acquiring  and  managing  an
aircraft currently on lease to Continental Airlines, Inc. The aircraft is a 1976
McDonnell Douglas DC-10-30.  The Partnership and Series E contributed $1,579,514
(99%) and $15,955 (1%) of the cash required for such acquisition,  respectively,
to ICON  Cash  Flow LLC III.  ICON  Cash  Flow LLC III  acquired  the  aircraft,
assuming  $9,309,759 in non-recourse debt and utilizing  contributions  received
from the Partnership and Series E. The purchase price of the transaction totaled
$10,905,228.  The lease is a leveraged lease and the lease term expires in March
2003. Profits, losses, excess cash and disposition proceeds are allocated 99% to
the  Partnership  and 1% to Series  E. The  Partnership's  financial  statements
include 100% of the assets and liabilities of ICON Cash Flow LLC III. Series E's
investment in ICON Cash Flow LLC III has been reflected as "Minority interest in
joint venture."

      ICON Receivables 1997-A LLC

      In March 1997 the Partnership,  Series D, ICON Cash Flow Partners L.P. Six
("L.P.   Six")  and  contributed  and  assigned   equipment  lease  and  finance
receivables  and residuals with a net book value of  $5,465,238,  $4,874,857 and
$5,553,962,  respectively to ICON Receivables  1997-A LLC ("1997-A"),  a special
purpose  entity  created for the  purpose of  originating  new leases,  managing
existing  contributed  assets and,  eventually,  securitizing its portfolio.  In
order to fund  the  acquisition  of new  leases,  1997-A  obtained  a  warehouse
borrowing  facility from Prudential  Securities Credit  Corporation (the "1997-A
Facility"). Borrowings under the 1997-A Facility were based on the present value
of the new leases.  Outstanding  amounts under the 1997-A Facility bore interest
equal to Libor plus 1.5%.

      On  September  19, 1997 Series E and L.P.  Six  contributed  and  assigned
equipment  lease and finance  receivables and residuals with a net book value of
$15,698,027 and $5,346,909,  respectively to 1997-A. The Partnership,  Series D,
Series E and L.P. Six  (collectively  the "1997-A  Members")  received a 19.97%,
17.81% 31.19% and 31.03% interest,  respectively, in 1997-A based on the present
value of their related contributions.


<PAGE>


                       ICON Cash Flow Partners L. P. Seven
                        (A Delaware Limited Partnership)

             Notes to Consolidated Financial Statements - Continued

      On  September  19,  1997,  1997-A  securitized  substantially  all  of its
equipment  leases and finance  receivables and residuals.  The net proceeds from
the  securitization  totaled  $47,140,183,  of which $16,658,877 was used to pay
down  the  1997-A  Facility,  and the  remaining  proceeds,  after  establishing
reserves for expenses,  were  distributed  to the 1997-A  Members based on their
respective interests. 1997-A became the beneficial owner of a trust. The trustee
for the  trust  is  Texas  Commerce  Bank  ("TCB").  In  conjunction  with  this
securitization,  the  portfolio  as  well  as the  General  Partner's  servicing
capabilities  were  rated  "AA" by Duff &  Phelps  and  Fitch,  both  nationally
recognized rating agencies. The General Partner, as servicer, is responsible for
managing, servicing, reporting on and administering the portfolio. 1997-A remits
all monies received from the portfolio to TCB. TCB is responsible for disbursing
to the  noteholders  their  respective  principal and interest and to 1997-A the
excess of cash  collected  over debt  service  from the  portfolio.  The  1997-A
Members received their pro rata share of any excess cash on a monthly basis from
1997-A.  The  Partnership's  share of the net proceeds  from the  securitization
totaled $4,889,804. The Partnership used these proceeds to payoff the $4,250,000
note payable to  1997-A.The  Partnership  accounts for its  investment in 1997-A
under the equity method of accounting. The Partnership's original investment was
recorded  at  cost  and is  adjusted  by  its  share  of  earnings,  losses  and
distributions thereafter.

      Information  as to the  financial  position and results of  operations  of
1997-A as of and for the nine months  ended  September  30,  1997 is  summarized
below:

                                             September 30, 1997

               Assets                          $ 54,950,026
                                               ============

               Liabilities                     $ 49,150,356
                                               ============

               Equity                          $  5,799,670
                                               ============

                                             Nine Months Ended
                                             September 30, 1997

               Net income                      $    677,434
                                               ============

       ICON Receivables 1997-B LLC

      In August 1997 the Partnership,  Series E and L.P. Six (collectively,  the
"1997-B Members") formed ICON Receivables 1997-B LLC ("1997-B"), for the purpose
of originating lease transactions and ultimately securitizing its portfolio. The
1997-B Members contributed $500,000 (16.67% interest), $250,000 (8.33% interest)
and $2,250,000 (75.00%  interest),  respectively to 1997-B. In order to fund the
acquisition of additional leases, 1997-B obtained a warehouse borrowing facility
from  Prudential   Securities  Credit   Corporation  (the  "1997-B   Facility").
Borrowings  under the 1997-B  Facility are based on the present value of the new
leases,  provided that in the aggregate,  the amount  outstanding  cannot exceed
$13,000,000.  Outstanding  amounts under the 1997-B Facility bear interest equal
to Libor plus 1.5%.  Collections of receivables from leases are used to pay down
the 1997-B Facility,  however, in the event of a default, all of 1997-B's assets
are available to cure such default. The net proceeds from


<PAGE>


                       ICON Cash Flow Partners L. P. Seven
                        (A Delaware Limited Partnership)

             Notes to Consolidated Financial Statements - Continued

the  expected  securitization  of  these  assets  will be used  to  pay-off  the
remaining 1997-B Facility balance and the remaining proceeds will be distributed
to the  1997-B  Members  in  accordance  with their  membership  interests.  The
Partnership  accounts for its  investment  in 1997-B under the equity  method of
accounting.  The Partnership's  original  investment was recorded at cost and is
adjusted by its share of earnings, losses and distribution thereafter.

      Information  as to the  financial  position and results of  operations  of
1997-B as of and for the nine months  ended  September  30,  1997 is  summarized
below:

                                            September 30, 1997

               Assets                         $   5,788,006
                                              =============

               Liabilities                    $   2,756,456
                                              =============

               Equity                         $   3,031,550
                                              =============

                                            Nine Months Ended
                                            September 30, 1997

               Net income                     $      31,550
                                              =============

4.    Related Party Transactions

      Fees and other expenses paid or accrued by the  Partnership to the General
Partner or its affiliates for the nine months ended  September 30, 1997 and 1996
were as follows:
<TABLE>

                                     1997             1996
                                     ----             ----

<S>                            <C>               <C>              <C>                 
Underwriting commissions       $    389,092      $    429,855     Charged to Equity
Organization and offering           680,910           752,246     Charged to Equity
Acquisition fees                  2,064,530         1,675,433     Capitalized
Management fees                   1,084,619            76,294     Charged to operations
Administrative expense
 reimbursements                     463,634            37,142     Charged to operations
                               ------------      ------------

Total                          $  4,682,785      $  2,970,973
                               ============      ============
</TABLE>

      On December  31, 1996,  the  Partnership  and an affiliate  formed a joint
venture for the purpose of acquiring  and managing an aircraft.  (See Note 3 for
additional information relating to the joint venture.)

      On March 11, 1997, the  Partnership  borrowed  $4,250,000 from 1997-A , an
affiliate of the Partnership  (see Note 3). The note is a short term note, bears
interest  at  Libor  plus  1.5% and was paid  from  the  Partnership's  share of
securitization proceeds September 1997.


<PAGE>


                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)


Item 2.       General Partner's Discussion and Analysis of Financial Condition
              and Results of Operations

              ICON Cash Flow Partners L.P. Seven (the  "Partnership") was formed
on May 23, 1995 as a Delaware  limited  partnership.  The Partnership  commenced
business  operations  on its initial  closing date,  January 19, 1996,  with the
admission of 26,367.95  limited  partnership units at $100 per unit representing
$2,636,795.17 of capital  contributions.  Through September 30, 1997, 443,717.39
additional   units  were   admitted,   bringing  the  total  units  and  capital
subscriptions to 470,085.34 and $47,008,534, respectively.

              The  Partnership's  portfolio  consisted  of a net  investment  in
finance leases,  estimated unguaranteed residual value, leveraged leases, equity
investment in joint  venture and  financings  representing  68%, 22%, 8%, 2% and
less than 1% of total  investments at September 30, 1997,  respectively and 41%,
26%, 21%, 0% and 12% at September 30, 1996, respectively.

Results of Operations

Three Months Ended September 30, 1997 and 1996

              For the three  months  ended  September  30, 1996 the  Partnership
leased or financed  equipment  with an initial cost of $44,991,096 to 50 lessees
or equipment users.

              Revenue  for the  three  months  ended  September  30,  1997  were
$2,491,247,  representing  an increase of $2,194,768  from 1996. The increase in
revenues resulted primarily from an increase in finance income of $1,223,077, an
increase in income from leveraged  leases of $914,314 or 100% and an increase in
income  from equity  investment  in joint  venture of  $129,224  or 100%.  These
increases  were partially  offset by a decrease in interest  income and other of
$71,847 or 68% from  1996.  The  increase  in finance  income  resulted  from an
increase in the average  size of the  portfolio  from 1996 to 1997.  Income from
leveraged  leases  increased due to the  Partnership's  increased  investment in
leverage  lease  transactions.  Income from equity  investment  in joint venture
increased  due to an  increase  in the  average  size  of  the  portfolio  under
investment. Interest income and other decreased due to a decrease in the average
cash balance from 1996 to 1997.

              Expenses  for the  three  months  ended  September  30,  1997 were
$2,424,927,  representing  an increase of $2,254,738  from 1996. The increase in
expenses resulted  primarily from an increase in interest expense of $1,335,341,
an increase in  management  fees of  $385,227,  an increase in  amortization  of
initial  direct  costs  of  $264,740,  an  increase  in  administrative  expense
reimbursements of $158,287,  an increase in provision for bad debt of $75,000 or
100%,  an  increase  in general  and  administrative  expense of $35,048  and an
increase  in  minority  interest in joint  venture of $1,096.  Interest  expense
increased due to an increase in the average debt  outstanding from 1996 to 1997.
Management fees,  amortization of initial direct costs,  administrative  expense
reimbursements  and  general  and  administrative  expense  increased  due to an
increase in the average size of the portfolio  from 1996 to 1997. As a result of
an  analysis  of  delinquency,  an  assessment  of overall  risk and a review of
historical loss experience,  it was determined that a greater  provision for bad
debts of $75,000 was required for the three months ended September 30, 1997.


<PAGE>


                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)

              Net income for the three months ended  September 30, 1997 and 1996
was $66,320 and  $126,290,  respectively.  The net income per  weighted  average
limited partnership unit was $.15 and $1.05, respectively.

Nine Months Ended September 30, 1997 and 1996

              For the  nine  months  ended  September  30,  1997  and  1996  the
Partnership leased or financed equipment with an initial cost of $51,527,713 and
$55,847,778, respectively to 21 and 125 lessees or equipment users respectively.
The weighted average initial transaction term for each year was 51 and 44 months
respectively.

              Revenues  for the  nine  months  ended  September  30,  1997  were
$5,898,186,  representing  an increase of $5,277,255  from 1996. The increase in
revenues resulted from an increase in finance income of $3,450,651,  an increase
in income from leveraged lease of $1,666,627 or 100%, an increase in income from
equity  investment  in joint  venture of $283,957 or 100% and an increase in net
gain on sales or  remarketing of equipment of $39,180 or 100%.  These  increases
were partially  offset by a decrease in interest income and other of $163,160 or
69% from 1996. The increase in finance income  resulted from the increase in the
average size of the portfolio from 1996 to 1997.  Income from leveraged  leases,
and  income  from  equity  investment  in  joint  venture  increased  due to the
Partnership's increased investment in these types of transactions.  The net gain
on sales or remarketing of equipment increased due to the early termination of a
financing transaction.  Interest income and other decreased due to a decrease in
the average cash balance from 1996 to 1997.

              Expenses  for the  nine  months  ended  September  30,  1997  were
$5,662,954,  representing  an increase of $5,237,609  from 1996. The increase in
expenses was due to an increase in interest  expense of $2,696,232,  an increase
in management fees of $1,008,325,  an increase in amortization of initial direct
costs of  $830,681,  an increase in  administrative  expense  reimbursements  of
$426,489, an increase in provision for bad debt of $150,000 or 100%, an increase
in general and  administrative  expense of $122,608  and an increase in minority
interest in joint venture of $3,275 or 100%.  Interest expense  increased due to
an increase in the average debt outstanding from 1996 to 1997.  Management fees,
amortization of initial direct costs,  administrative  expense reimbursement and
general and  administrative  expense increased due to an increase in the average
size  of the  portfolio  from  1996 to  1997.  As a  result  of an  analysis  of
delinquency,  an  assessment  of overall  risk and a review of  historical  loss
experience,  it was  determined  that a  $150,000  provision  for bad  debts was
required for the nine months ended September 30, 1997.

              Net income for the nine months ended  September  30, 1997 and 1996
was $235,232 and  $195,586,  respectively.  The net income per weighted  average
limited partnership unit was $.62 and $1.63, respectively.

Liquidity and Capital Resources

              The  Partnership's  primary  sources of funds for the nine  months
ended  September 30, 1997 and 1996 were capital  contributions,  net of offering
expenses, of $16,828,246 and $18,591,229,  from limited partners,  respectively,
net cash  provided by  operations  of  $4,122,847  and  $573,133,  respectively,
proceeds  from  sale of  equipment  of  $2,041,692  in 1997  and  proceeds  from
affiliate note of $4,250,000 in 1997.  These funds were used to make payments on
borrowings,  fund cash distributions and to purchase equipment.  The Partnership
intends to purchase additional  equipment and fund cash distributions  utilizing
capital  contributions  cash  provided  by  operations,  proceeds  from sales of
equipment and borrowings.


<PAGE>



                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)

              Cash  distributions  to limited partners for the nine months ended
September 30, 1997 and 1996,  which were paid monthly,  totaled  $2,780,594  and
$834,659, respectively, of which $232,880 and $193,630 was investment income and
$2,547,714  and  $641,029  was a return of  capital,  respectively.  The monthly
annualized cash  distribution  rate to limited  partners was 22.1% and 21.2% for
1996 and 1997,  of which  1.85% and 4.92% was  investment  income and 20.25% and
16.28% was a return of capital respectively,  calculated as a percentage of each
partner's  initial capital  contribution.  The limited partner  distribution per
weighted  average unit  outstanding for the nine months ended September 30, 1997
and 1996  was  $6.17  and  $7.04,  respectively,  of which  $.49 and  $1.63  was
investment income and $5.68 and $5.41 was a return of capital, respectively.

      In March 1997 the Partnership,  Series D, ICON Cash Flow Partners L.P. Six
("L.P.   Six")  and  contributed  and  assigned   equipment  lease  and  finance
receivables  and residuals with a net book value of  $5,465,238,  $4,874,857 and
$5,553,962,  respectively to ICON Receivables  1997-A LLC ("1997-A"),  a special
purpose  entity  created for the  purpose of  originating  new leases,  managing
existing  contributed  assets and,  eventually,  securitizing its portfolio.  In
order to fund  the  acquisition  of new  leases,  1997-A  obtained  a  warehouse
borrowing  facility from Prudential  Securities Credit  Corporation (the "1997-A
Facility"). Borrowings under the 1997-A Facility were based on the present value
of the new leases.  Outstanding  amounts under the 1997-A Facility bore interest
equal to Libor plus 1.5%.

      On  September  19, 1997 Series E and L.P.  Six  contributed  and  assigned
equipment  lease and finance  receivables and residuals with a net book value of
$15,698,027 and $5,346,909,  respectively to 1997-A. The Partnership,  Series D,
Series E and L.P. Six  (collectively  the "1997-A  Members")  received a 19.97%,
17.81% 31.19% and 31.03% interest,  respectively, in 1997-A based on the present
value of their related contributions.

      On  September  19,  1997,  1997-A  securitized  substantially  all  of its
equipment  leases and finance  receivables and residuals.  The net proceeds from
the  securitization  totaled  $47,140,183,  of which $16,658,877 was used to pay
down  the  1997-A  Facility,  and the  remaining  proceeds,  after  establishing
reserves for expenses,  were  distributed  to the 1997-A  Members based on their
respective interests. 1997-A became the beneficial owner of a trust. The trustee
for the  trust  is  Texas  Commerce  Bank  ("TCB").  In  conjunction  with  this
securitization,  the  portfolio  as  well  as the  General  Partner's  servicing
capabilities  were  rated  "AA" by Duff &  Phelps  and  Fitch,  both  nationally
recognized rating agencies. The General Partner, as servicer, is responsible for
managing, servicing, reporting on and administering the portfolio. 1997-A remits
all monies received from the portfolio to TCB. TCB is responsible for disbursing
to the  noteholders  their  respective  principal and interest and to 1997-A the
excess of cash collected over debt service from the portfolio. The Partnership's
share  of the net  proceeds  from the  securitization  totaled  $4,889,804.  The
Partnership used these proceeds to payoff the $4,250,000 note payable to 1997-A.
The Partnership accounts for its investment in 1997-A under the equity method of
accounting.  The Partnership's  original  investment was recorded at cost and is
adjusted by its share of earnings, losses and distributions thereafter.

      In August 1997 the Partnership,  Series E and L.P. Six (collectively,  the
"1997-B Members") formed ICON Receivables 1997-B LLC ("1997-B"), for the purpose
of originating lease transactions and ultimately securitizing its portfolio. The
1997-B Members contributed $500,000 (16.67% interest), $250,000 (8.33% interest)
and $2,250,000 (75.00%  interest),  respectively to 1997-B. In order to fund the
acquisition of additional leases, 1997-B obtained a warehouse borrowing facility
from  Prudential   Securities  Credit   Corporation  (the  "1997-B   Facility").
Borrowings  under the 1997-B  Facility are based on the present value of the new
leases, provided that in the aggregate, the amount outstanding cannot


<PAGE>


                       ICON Cash Flow Partners L.P. Seven
                        (A Delaware Limited Partnership)

exceed $13,000,000.  Outstanding amounts under the 1997-B Facility bear interest
equal to Libor plus 1.5%. Collections of receivables from leases are used to pay
down the 1997-B Facility,  however,  in the event of a default,  all of 1997-B's
assets are  available to cure such  default.  The net proceeds from the expected
securitization  of these  assets  will be used to pay-off the  remaining  1997-B
Facility  balance and the remaining  proceeds will be  distributed to the 1997-B
Members in accordance with their membership interests.  The Partnership accounts
for its  investment  in  1997-B  under the  equity  method  of  accounting.  The
Partnership's  original  investment  was recorded at cost and is adjusted by its
share of earnings, losses and distribution thereafter.

              As of  September  30, 1997,  except as noted above,  there were no
known trends or demands,  commitments,  events or uncertainties which are likely
to have any material effect on liquidity.  As cash is realized from  operations,
sales of equipment  and  borrowings,  the  Partnership  will invest in equipment
leases and financings where it deems it to be prudent while retaining sufficient
cash to meet its reserve  requirements and recurring  obligations as they become
due.


<PAGE>


                       ICON Cash Flow Partners L. P. Seven
                        (A Delaware Limited Partnership)


PART II  - OTHER INFORMATION

Item 6 - Exhibits and Reports on Form 8-K

No reports on Form 8-K were filed by the  Partnership  during the quarter  ended
September 30, 1997.


<PAGE>


                       ICON Cash Flow Partners L. P. Seven
                        (A Delaware Limited Partnership)



                                   SIGNATURES


              Pursuant to the  requirements  of the  Securities  Exchange Act of
1934,  the  registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.

                                   ICON Cash Flow Partners L. P. Seven
                                   File No. 33-94458 (Registrant)
                                   By its General Partner,
                                   ICON Capital Corp.




November 14, 1997                  /s/ Gary N. Silverhardt
-----------------                  ---------------------------------------------
      Date                         Gary N. Silverhardt
                                   Chief Financial Officer
                                   (Principal financial and account officer
                                   of the General Partner of the Registrant)





<PAGE>