UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                       Washington, DC  20549

                            FORM 10-QSB


X    QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
    SECURITIES ACT OF 1934 FOR THE PERIOD ENDED JUNE 30, 2003



    TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
        SECURITIES EXCHANGE ACT OF 1934 (NO FEE REQUIRED)

       For the transition period from ________ to _________.

                  Commission file number: 0-26680


                     NICHOLAS FINANCIAL, INC.
      (Exact name of registrant as specified in its Charter)


       British Columbia, Canada                   8736-3354
   (State or Other Jurisdiction of             (I.R.S. Employer
     Incorporation or Organization)          Identification No.)

  2454 McMullen Booth Road, Building C
        Clearwater, Florida                         33759
  (Address of Principal Executive Offices)        (Zip Code)

                          (727) 726-0763
       (Registrant's telephone number, Including area code)

                          Not applicable
  (Former name, former address and former fiscal year, if changed
                       since last report)

Indicate  by check mark whether the registrant (1) has filed  all
reports  required  to be filed by Section 13  and  15(d)  of  the
Securities  Exchange Act of 1934 during the preceding  12  months
(or for such shorter periods that the Registrant was required  to
file  such  reports),  and (2) has been subject  to  such  filing
requirements for the past 90 days.  Yes   X      No ____.


As of July 31st, 2003 there were 5,043,488 shares of common stock
                           outstanding


<PAGE> 2



                    Nicholas Financial, Inc.
                           Form 10-QSB
                              Index


Part I.  Financial Information                              Page

Item 1.  Financial Statements (Unaudited)

         Condensed Consolidated Balance Sheet as of
         June 30, 2003........................................3

         Condensed Consolidated Statements of Income for
         the three months ended June 30, 2003 and 2002........4

         Condensed Consolidated Statements of Cash Flows for
         the three months ended June 30, 2003 and 2002........5

         Notes to the Condensed Consolidated Financial
         Statements...........................................6

Item 2.  Management's Discussion and Analysis of Financial
         Condition and Results of Operations.................12

Item 3.  Controls & Procedures...............................23

Part II. Other Information

Item 1.  Legal Proceedings...................................24

Item 2.  Changes in Securities...............................24

Item 3.  Defaults upon Senior Securities.....................24

Item 4.  Submission of Matters to a Vote of
         Security Holders....................................24

Item 5.  Other Information...................................24

Item 6.  Exhibits and Reports on Form 8-K....................24

         Signatures..........................................25

         Exhibit Index.......................................26


<PAGE> 3


Part I. Item 1


                     Nicholas Financial, Inc.
               Condensed Consolidated Balance Sheet
                            (Unaudited)

<TABLE>
<CAPTION>
                                                    June 30,
                                                     2003
                                              -----------------
<S>                                             <C>
Assets
Cash                                             $   733,285
Finance receivables, net                          89,699,998
Accounts receivable                                   13,150
Assets held for resale                               421,987
Prepaid expenses and other assets                    339,036
Property and equipment, net                          510,078
Deferred income taxes                              3,135,787
                                                -------------
Total assets                                     $94,853,321
                                                =============

Liabilities

Line of Credit                                   $61,960,238
Drafts Payable                                       691,560
Notes payable - related party                        807,468
Accounts payable and accrued liabilities           3,349,529
Derivatives                                        2,623,825
Income taxes payable                               1,511,906
Deferred revenues                                    909,168
                                                 ------------
Total liabilities                                 71,853,694

Shareholders' equity
Preferred stock, no par: 5,000,000 shares
authorized;none issued and outstanding                     -

Common stock, no par: 50,000,000 shares
authorized; 5,010,421 shares issued and
outstanding                                        4,460,173
Other comprehensive loss                          (1,666,614)
Retained earnings                                 20,206,068
                                                 ------------
                                                  22,999,627
                                                 ------------
Total liabilities and shareholders' equity       $94,853,321
                                                 ============
See accompanying notes.

</TABLE>

<PAGE> 4

                     Nicholas Financial, Inc.
            Condensed Consolidated Statements of Income
                            (Unaudited)

<TABLE>
<CAPTION>

                                       Three months ended
                                            June 30
                                        2003        2002
                                    ------------------------
<S>                                <C>            <C>
Revenue:
Interest income on
 finance receivables                $5,988,473     $5,233,349
Sales                                   71,558         82,376
                                    -------------------------
                                     6,060,031      5,315,725
Expenses:
Cost of sales                           17,074         17,168
Marketing                              211,232        153,481
Administrative                       2,315,877      1,981,858
Provision for credit losses            579,999        547,066
Depreciation and amortization           69,718         37,000
Interest expense                       987,328        964,063
                                    --------------------------
                                     4,181,228      3,700,636
Operating income before
 income taxes                        1,878,803      1,615,089

Income tax expense:
Current                              1,592,107        820,121
Deferred                              (879,279)      (218,197)
                                    -------------------------
                                       712,828        601,924
                                    -------------------------
Net income                          $1,165,975     $1,013,165
                                    =========================
Earnings per share - basic               $0.23          $0.20
                                    =========================
Earnings per share - diluted             $0.22          $0.19
                                    =========================

See accompanying notes.

</TABLE>

<PAGE> 5

                    Nicholas Financial, Inc.
          Condensed Consolidated Statements of Cash Flows
                            (Unaudited)


<TABLE>
<CAPTION>

                                       Three months ended June 30
                                          2003           2002
                                      -----------------------------
<S>                                  <C>            <C>
Operating activities
Net income                            $ 1,165,975    $ 1,013,165
Adjustments to reconcile net
income to net cash provided
  by operating activities:
Depreciation                               69,718         37,000
Provision for credit losses               579,999        547,066
Deferred income taxes                    (879,279)        28,675
Changes in operating assets and
 liabilities:
Accounts receivable                         3,078          2,174
Prepaid expenses and other assets         (21,551)      (251,305)
Accounts payable and accrued liabilities  278,653       (284,879)
Drafts payable                             27,040        (71,648)
Income taxes payable                    1,406,031        552,061
Deferred revenues                          (7,721)       114,325
                                       ---------------------------
Net cash provided by
 operating activities                   2,621,943      1,686,634

Investing activities
Purchase and origination of
 finance contracts                    (17,619,385)   (15,312,018)
Principal payments received            13,555,378     12,430,856
Purchase of property and
  equipment, net of disposals            (112,200)       (49,630)
                                      ---------------------------
Net cash used in investing
 activities                            (4,176,207)    (2,930,792)

Financing activities
(Repayment) issuance of
notes payable - related party              (1,142)         6,458
Net proceeds from line of credit        1,800,000      1,860,000
Sale of common stock                        7,480         30,448
                                       --------------------------
Net cash provided by
 financing activities                   1,806,338      1,896,906
                                       --------------------------
Net increase in cash                      252,074        652,748

Cash, beginning of period                 481,211         51,239
Cash, end of period                     $ 733,285      $ 703,987

See accompanying notes.

</TABLE>

<PAGE> 6
                     Nicholas Financial, Inc.
     Notes to the Condensed Consolidated Financial Statements
                           (Unaudited)

                          June 30, 2003


1. Basis of Presentation

The   accompanying  unaudited  condensed  consolidated  financial
statements of Nicholas Financial, Inc. (the "Company") have  been
prepared  in  accordance  with  accounting  principles  generally
accepted  in  the United States for interim financial information
and  with  the  instructions  to  Form  10-QSB  pursuant  to  the
Securities and Exchange Act of 1934, as amended in Article 10  of
Regulation  SB, as amended. Accordingly, they do not include  all
of   the   information  and  footnotes  required  by   accounting
principles  generally accepted in the United States for  complete
financial   statements.  In  the  opinion  of   management,   all
adjustments (consisting of normal recurring accruals)  considered
necessary  for a fair presentation have been included.  Operating
results  for  the  three  months ended  June  30,  2003  are  not
necessarily  indicative of the results that may be  expected  for
the year ending March 31, 2004. For further information, refer to
the  condensed  consolidated financial statements  and  footnotes
thereto  included in the Company's Annual Report on  Form  10-KSB
for the fiscal year ended March 31, 2003.

2. Revenue Recognition

Interest  income on finance receivables is recognized  using  the
interest   method.   Accrual  of  interest  income   on   finance
receivables is suspended when a loan is contractually  delinquent
for  60  days or more or the collateral is repossessed, whichever
is earlier.

The  Company attributes all of its dealer discount and a  portion
of unearned income to a reserve for credit losses.   Such amounts
reduce the interest recognized over the life of the contract. The
Company  receives  a  commission for selling add-on  services  to
consumer  borrowers  and  amortizes the commission,  net  of  the
related  costs,  over  the term of the loan  using  the  interest
method. The Company's net fees charged for processing a loan  are
recognized  as an adjustment to the yield and are amortized  over
the life of the loan using the interest method.

The  amount  of future unearned income represents the  amount  of
finance  charges the Company expects to fully earn over the  life
of  the current portfolio, and is computed as the product of  the
contract  rate, the contract term, and the contract  amount.  The
Company  aggregates the contracts purchased during a  three-month
period  for  all of its branch locations. After the  analysis  of
purchase  date accounting is complete, any uncollectable  amounts
would be contemplated in the allowance for credit losses.

3. Earnings Per Share

Basic earnings per share excludes any dilutive effects of common
stock equivalents such as options, warrants, and convertible
securities. Diluted earnings per share includes the effects of
dilutive options, warrants, and convertible securities. Basic and
diluted earnings per share have been computed as follows:

<PAGE> 7


                     Nicholas Financial, Inc.
     Notes to the Condensed Consolidated Financial Statements
                            (Unaudited)

<TABLE>
<CAPTION>

3. Earnings Per Share (continued)

                                           Three months ended
                                                June 30,
                                             2003       2002
                                        ------------------------
<S>                                    <C>           <C>
Numerator:

 Numerator for basic and dilutive
 earnings per share available to
 common stockholders                    $1,165,975    $1,013,165
                                        ========================
Denominator:
 Denominator for basic earnings per
 share - weighted average shares         5,006,926     4,998,364

 Effect of dilutive securities:
 Employee stock options                    293,531       343,819
                                        ------------------------
 Denominator for diluted earnings
 per share - adjusted weighted-
 average shares and
 assumed conversions                      5,300,458    5,342,183
                                        ========================
Earnings per share - basic                    $0.23        $0.20
                                        ========================
Earnings per share - diluted                  $0.22        $0.19
                                        ========================
</TABLE>

<PAGE> 8

                    Nicholas Financial, Inc.
     Notes to the Condensed Consolidated Financial Statements
                            (Unaudited)



4. Finance Receivables

The  Company  charges-off receivables when an individual  account
has  become more than 120 days contractually delinquent.  In  the
event of a repossession the charge-off will occur in the month in
which the vehicle was repossessed.

Costs   associated  with  repossession,  transport  and   auction
preparation   expenses  are  charges  reported  under   operating
expenses  in the period in which they were incurred. The  Company
maintains  full  responsibility for repossessions.  There  is  no
relationship between the Company and the dealer with respect to a
given  contract once the assignment of that contract is complete.
The  dealer  has  no  vested interest in the performance  of  any
installment contract the Company purchases.

Finance  receivables  consist of automobile  finance  installment
contracts and direct consumer loans and are detailed as follows:

Finance receivables, gross contract      $143,170,416
    Less:
       Unearned interest                  (34,174,937)
                                         -------------
                                          108,995,479
       Dealer discounts                   (13,358,345)
       Allowance for credit losses         (5,937,136)
                                         -------------
       Finance receivables, net          $ 89,699,998
                                         =============

The terms of the receivables range from 12 to 66 months and bear
a weighted average effective interest rate of 24%.


5. Line of Credit

The  Company has a $75 million Line of Credit facility (the Line)
which  expires  on November 30, 2004. Borrowings under  the  Line
bear  interest  at the prime rate plus twenty-five basis  points.
The Company also has several LIBOR pricing options available.  If
the  outstanding balance falls below $10 million the  Line  bears
interest at the prime rate plus 2.00%. Pledged as collateral  for
this credit facility are all of the assets of Nicholas Financial,
Inc.  and  its subsidiaries. As of June 30, 2003 the  outstanding
amount  of  the  credit  facility  was  $61,960,238,  the  amount
available  under the line of credit was $13,039,762. As  of  June
30,  2003  the  Company  was  in  full  compliance  of  all  debt
covenants.


6. Notes Payable - Related Party

The Company has unsecured notes totaling $807,468. The notes bear
an interest rate of 8.87% and are due upon 30-day demand.

<PAGE> 9

                     Nicholas Financial, Inc.
     Notes to the Condensed Consolidated Financial Statements
                            (Unaudited)



7. Derivatives and Hedging

The  Company is party to interest rate swap agreements which  are
derivative  instruments.  For  derivative  instruments  that  are
designated  and qualify as a cash flow hedge (i.e.,  hedging  the
exposure  to  variability in expected future cash flows  that  is
attributable to a particular risk, such as interest  rate  risk),
the  effective  portion  of the gain or loss  on  the  derivative
instrument is reported as a component of comprehensive income and
reclassified  into earnings in the same period or periods  during
which the hedged transaction affects earnings. The remaining gain
or  loss on the derivative instrument in excess of the cumulative
change  in  the  present value of the future cash  flows  of  the
hedged item, if any, is recognized in current earnings during the
period of change.

The  Company has entered into interest rate swap agreements  that
effectively  convert  a portion of its floating-rate  debt  to  a
fixed-rate  basis,  thus  reducing the impact  of  interest  rate
changes   on   future  interest  expense.  At  June   30,   2003,
approximately $50,000,000 of the Company's borrowings  have  been
designated  as the hedged items to interest rate swap agreements.
Under  the  swap  agreements,  the Company  received  an  average
variable  rate of 3.56% and paid an average fixed rate  of  6.35%
during the three months ended June 30, 2003. A loss of $1,666,614
related to the fair value of the swaps at June 30, 2003 has  been
recorded in the caption derivatives on the balance sheet. Amounts
of   net  losses  on  derivative  instruments  expected   to   be
reclassified from comprehensive income to earnings in the next 12
months  are  not  expected to be material. The Company  has  also
entered  into three forward locking swaps disclosed in the  table
below.

<TABLE>
<CAPTION>

The Company has entered into the following cash-flow hedges:




 Date             Effective          Notional  Fixed Rate    Maturity
 Entered             Date             Amount   Of Interest     Date
=========================================================================
<S>               <C>                <C>           <C>      <C>
 August 19,1999    August 19, 1999    $10,000,000   5.80%    August 1,2003
 May 17, 2000      May 17, 2000        10,000,000   6.87%    May 17, 2004
 October 5, 2001   October 5, 2001     10,000,000   3.85%    October 5, 2004
 June 28, 2002     June 28, 2002       10,000,000   3.83%    July 2, 2005
 January 6, 2003   April 2, 2003       10,000,000   3.35%    April 2, 2007
 January 31, 2003  August 1, 2003      10,000,000   3.20%    August 2, 2006
 February 26, 2003 May 17, 2004        10,000,000   3.91%    May 19, 2008

</TABLE>

The  Company  has also entered into various interest rate  option
agreements with maturities through May 17, 2004.

The  Company  utilizes  the above noted interest  rate  swaps  to
manage  its interest rate exposure. The swaps effectively convert
a  portion  of the Company's floating rate debt to a fixed  rate,
more  closely matching the interest rate characteristics  of  the
Company's  finance  receivables. There has historically  been  no
ineffectiveness associated with the Company's hedges.

<PAGE> 10

                    Nicholas Financial, Inc.
     Notes to the Condensed Consolidated Financial Statements
                            (Unaudited)



8. Stock Options

In  December  2002,  the  Financial  Accounting  Standards  Board
("FASB")  issued  Statement  of  Financial  Accounting  Standards
(SFAS)      No.      148,     "Accounting     for     Stock-Based
Compensation-Transition  and  Disclosure"   which   amends   FASB
Statement  No.  123.   SFAS 148 provides alternative  methods  of
transition for a voluntary change to the fair value based  method
of  accounting  for stock-based-employee compensation.  SFAS  148
also  amends the disclosure requirements of SFAS 123  to  require
more   prominent  and  more  frequent  disclosures  in  financial
statements  concerning  the effects of stock-based  compensation.
The  effective date of SFAS 148 is for fiscal years ending  after
December 15, 2002.

The  Company has an employee stock incentive plan (the  SIP)  for
officers, directors and key employees under which 585,866  shares
of  common stock were reserved for issuance as of June 30,  2003.
Options  currently granted by the Company generally vest  over  a
five-year period.

Previous to FAS 148 the Company had elected to follow APB 25, and
related  Interpretations in accounting  for  its  employee  stock
options because the alternative, fair value method, provided  for
under  FAS 123 requires use of option valuation models that  were
not  developed  for use in valuing employee stock options.  Under
APB  25,  if  the exercise price of the Company's employee  stock
options  equals the market price of the underlying stock  on  the
date of grant, no compensation expense is recognized.

The  following table contains the pro forma net income and  basic
and fully diluted earnings per share under the fair value method.
The fair value method uses the Black-Scholes option-pricing model
to  determine compensation expense associated with the  Company's
options.

                          Three Months Ended June 30
                              2003           2002
                         ----------------------------

Net income                 $1,165,975    $1,013,165
 Basic earnings per share       $0.23         $0.20
 Fully diluted earnings
  per share                    $0.22          $0.19
Stock based employee
 compensation cost under
 the Fair Value Method       $12,012        $24,209
Pro forma net income      $1,153,963       $988,956
 Pro forma basic
  earnings per share            $.23           $.20
 Pro forma fully diluted
  earnings per share            $.22           $.19


<PAGE> 11

                    Nicholas Financial, Inc.
     Notes to the Condensed Consolidated Financial Statements
                           (Unaudited)


9. Comprehensive Income

The  Company is party to interest rate swap agreements which  are
derivative  instruments.  For  derivative  instruments  that  are
designated  and qualify as a cash flow hedge (i.e.,  hedging  the
exposure  to  variability in expected future cash flows  that  is
attributable to a particular risk, such as interest  rate  risk),
the  effective  portion  of the gain or loss  on  the  derivative
instrument is reported as a component of comprehensive income and
reclassified  into earnings in the same period or periods  during
which the hedged transaction affects earnings.

The  following  table  reconciles net income  with  comprehensive
income  for  the  three  months ended June  30,  2003  and  2002,
respectively.


                        June 30, 2003      June 30, 2002
                       -----------------------------------
Net Income              $1,165,975          $1,013,165
Mark to market
 interest rate swaps      (264,269)           (246,872)
                         ------------------------------
Comprehensive income      $901,706            $766,293
                         ==============================


10. Subsequent events

On August 11th, 2003 the Company announced its Board of Directors
has approved a $.10 per share cash dividend payable semi-annual
at the rate of $.05 per share. The record date has been set for
September 8, 2003 and the payment date is September 22, 2003.

<PAGE> 12

Part I. Item 2

         MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                CONDITION AND RESULTS OF OPERATIONS
Introduction

   Consolidated  net income increased for the three-month  period
ended  June 30, 2003 to $1,165,975 from $1,013,165 for the three-
month  period  ended  June  30,  2002.  Earnings  were  favorably
impacted  by  an increase in the outstanding loan portfolio.  The
Company's  NDS  subsidiary  did not contribute  significantly  to
consolidated operations in the three-month periods ended June 30,
2003 or 2002.

<TABLE>
<CAPTION>

                                      Three months ended June 30,
    Select Portfolio Information            2003           2002
                                      ----------------------------
<S>                                 <C>              <C>
Average Net Finance Receivables(1)   $107,212,467     $93,781,204
Average Indebtedness(2)                62,239,301      55,581,193
Total Finance Revenue(3)                5,988,473       5,233,349
Interest Expense                          987,328         964,063
Net Finance Revenue                     5,001,145       4,269,286
Weighted average Contractual rate(5)       23.90%          23.93%
Gross Portfolio Yield (4)                  22.34%          22.32%
Average Cost of Borrowed Funds(2)           6.35%           6.94%
Provision for Credit Losses
 as a Percentage of Average Net
 Finance Receivables                        2.16%           2.33%
Net Portfolio Yield(4)                     16.49%          15.88%
Operating Expenses as a Percentage
 of Average Net Finance Receivables(6)      9.43%           8.85%
Pre-tax Yield as a Percentage
 of Average Net Finance Receivables(7)      7.06%           7.03%
Write-off to Liquidation  (8)               7.76%           7.90%
Net Charge-Off Percentage (9)               6.64%           6.95%

</TABLE>

<PAGE> 13

(1) Average net finance receivables represent the average of  net
    finance  receivables throughout the period.      Net  finance
    receivables  represents gross finance  receivables  less  any
    unearned finance charges related to those receivables.

(2) Average   indebtedness  represents  the  average  outstanding
    borrowings  under  the  Line  of Credit  and  notes  payable-
    related  party.   Average cost of borrowed  funds  represents
    interest expense as a percentage of average indebtedness.

(3) Does  not  include revenue of $71,558 and $82,376  associated
    with  the  Company's software subsidiary "NDS for  the  three
    months ended June 30, 2003 and 2002, respectively.

(4) Gross portfolio yield represents total finance revenues as  a
    percentage   of   average  net  finance   receivables.    Net
    portfolio  yield represents net finance revenue income  minus
    the  provision for credit losses as a percentage  of  average
    net finance receivables.

(5) Weighted  average  contractual rate represents  the  weighted
    average Annual percentage rate (APR) of all Contracts in  the
    portfolio during the period.

(6) Does  not  include operating expenses of $86,555 and $113,875
    associated  with the Company's software subsidiary  "NDS  for
    the three months ended June 30, 2003 and 2002, respectively.

(7) Pre-tax  yield represents net portfolio yield minus operating
    expenses as a percentage of interest earning      assets.

(8) Liquidation  is defined as beginning receivable  balance plus
    current period purchases minus voids and     refinances minus
    ending receivable balance.

(9) Net  charge-off percentage represents net charge-offs divided
    by  average  net finance receivables outstanding  during  the
    period.


<PAGE> 14


Three  months  ended June 30, 2003 compared to three  months  ended
June 30, 2002


 Interest Income and Loan Portfolio

       Interest  revenue increased 14% to $6.0  million  for  the
period  ended  June 30, 2003, from $5.2 million  for  the  period
ended  June 30, 2002. The net finance receivable balance  totaled
$89.7 million at June 30, 2003, an increase of 14% from the $78.4
million  at  June  30,  2002.   The primary  reason  net  finance
receivables increased was the increase in the receivable base  of
several  existing  branches and the opening  of  five  additional
branches. The gross finance receivable balance increased  15%  to
$143.2  million at June 30, 2003 from $124.6 million at June  30,
2002.  The  primary  reason interest revenue  increased  was  the
increase  in the outstanding loan portfolio. The gross  portfolio
yield increased from 22.32% for the period ended June 30, 2002 to
22.34% for the period ended June 30, 2003.

 Computer Software Business

   Sales for the period ended June 30, 2003 were $71,558 compared
to $82,376 for the period ended June 30, 2002, a decrease of 13%.
This  decrease  was  primarily due  to  lower  revenue  from  the
existing customer base and the continued emphasis on the  finance
subsidiary.

 Operating Expenses

       Operating expenses, excluding provision for credit  losses
and  interest expense, increased to $2.6 million for  the  period
ended  June 30, 2003 from $2.2 million for the period ended  June
30,  2002. This increase of 19% was primarily attributable to the
additional staffing of several existing branches, the opening  of
five   additional   branches  and  increased  general   operating
expenses.

 Interest Expense

      Interest expense increased to $987,328 for the period ended
June  30, 2003 as compared to $964,063 for the period ended  June
30, 2002. This increase was due to the increase in the amount  of
average  indebtedness  from $55.6 million for  the  three  months
ended  June 30, 2002 to $62.2 million for the three months  ended
June  30,  2003.  This  increase was offset  in  part  due  to  a
reduction  in  the  average cost of outstanding  borrowings  from
6.94%  for the three months ended June 30, 2002 to 6.35% for  the
three months ended June 30, 2003.

<PAGE> 15

Contract Procurement

The  Company purchases contracts in the states listed below.  The
amounts  shown in the table below represent the total face  value
of  contracts acquired. The Company has fifteen branch  locations
in  Florida  and does not have any immediate plans for additional
expansion in Florida. The Company has been expanding its contract
procurement in North Carolina, South Carolina, Ohio and Michigan.
Please see Future Expansion.

The Contracts purchased by the Company are predominately for used
vehicles,  less  than  3%  were  new.  The  average  model   year
collateralizing  the  portfolio is  a  1998  vehicle.   Contracts
purchased and originated are shown at face value.


              Maximum
              allowable
              Interest       Three Months Ended
  State        rate (1)     6/30/03       6/30/02
--------------------------------------------------
    FL          30%       $10,148,495  $9,616,464
    GA          29%         2,331,056   1,805,361
    NC          29%         1,998,035   2,008,000
    SC          29%           760,698     520,762
    OH          25%         3,125,301   1,574,553
    MI          25%           455,534           -
    VA          29%            17,040      46,642
                         -------------------------
  Total                   $18,836,159 $15,571,782

 (1) The allowable maximum interest rates by State is subject
     to change and are governed by the individual  states the
     Company conducts business in.



    Indirect
   Contracts             Three Months Ended
   Purchased            6/30/03      6/30/02
 --------------------------------------------------
 Purchases           $18,836,159   $15,571,782
 Weighted APR             24.00%        24.62%
 Average Discount          8.96%         8.83%
 Weighted average
  Term  (months)              44            44
 Average Loan             $8,186        $8,110
 Number of Contracts       2,301         1,920



      Direct
      Loans             Three Months Ended
   Originated           6/30/03     6/30/02
---------------------------------------------
 Originations          $941,223   $1,115,092
  Weighted APR           26.50%       25.78%
  Weighted average
   Term(months)              27           30
  Average Loan           $2,878       $3,195
  Number of Loans           327          349

<PAGE> 16


Analysis of Credit Losses

   Because of the nature of the borrowers under the Contracts and
its  direct  consumer  loan program, the  Company  considers  the
establishment  of  adequate reserves  for  credit  losses  to  be
imperative.  The Company segregates its Contracts into pools  for
purposes  of  establishing reserves for losses.  Each  such  pool
consists of the loans purchased by a Company branch office during
a  three-month period. The average pool consists of 74  Contracts
with  an  aggregate  initial principal  amount  of  approximately
$600,000. As of June 30, 2003, the Company had 442 active pools.

   The  Company  pools  Contracts according  to  branch  location
because  the  branches  purchase contracts in  different  markets
located in Florida, Georgia, North Carolina, South Carolina, Ohio
and Michigan. All Contracts purchased by a branch during a fiscal
quarter  comprise a pool. This method of pooling  by  branch  and
quarter  allows  the  Company to evaluate the  different  markets
where  the branches operate. The pools also allow the Company  to
evaluate  the  different  levels of customer  income,  stability,
credit  history,  and  the types of vehicles  purchased  in  each
market.

  Contracts are purchased from many different dealers and are all
purchased on an individual contract by contract basis. Individual
contract pricing is determined by the automobile dealerships  and
is  generally the lesser of State maximum interest rates  or  the
maximum  interest  rate  at which the customer  will  accept.  In
certain  markets,  competitive forces will  drive  down  contract
rates  from  the  maximum  rate to a level  where  an  individual
competitor is willing to buy an individual contract. The  Company
only  buys  contracts on an individual basis and never  purchases
contracts in batches.

   Dealer  discount  represents the difference between  the  face
value  of  an  installment contract and the amount of  money  the
Company  actually pays for the contract. The discount  negotiated
by  the  Company  is  a  function of the credit  quality  of  the
customer  and the wholesale value of the vehicle. The  automotive
dealer  accepts these terms by executing a dealer agreement  with
the  Company.  The  entire amount of discount relates  to  credit
quality,  and  is therefore considered to be part of  the  credit
loss  reserve.  The Company utilizes a static  pool  approach  to
track  portfolio  performance. A static pool  retains  an  amount
equal  to 100% of the discount into a reserve for credit  losses.
In  situations  where, at the date of purchase, the  discount  is
determined  to  be  insufficient to absorb all  potential  losses
associated  with  the pool, a portion of future  unearned  income
associated with that specific pool will be added to the  reserves
for   credit  losses  until  total  reserves  have  reached   the
appropriate level. Subsequent to the purchase, if the reserve for
credit losses is determined to be inadequate for a pool which  is
not  fully  liquidated,  then  a charge  to  income  through  the
provision is used to reestablish adequate reserves. If a pool  is
fully  liquidated  and  has any remaining  reserves,  the  excess
reserves  are immediately recognized into income. For  pools  not
fully  liquidated, that are determined to have  excess  reserves,
such  excess amounts are accreted into income over the  remaining
life  of  the pool. Reserves accreted into income for the  period
ended  June  30, 2003 were $524,125 compared to $581,051  in  the
period ended June 30, 2002.

   The Company has definitive underwriting guidelines it utilizes
to  determine  which contracts to purchase. These guidelines  are
very specific and result in all loan purchases having common risk
characteristics.  The Company utilizes its District  Managers  to
evaluate their respective branch locations for adherence to these
underwriting  guidelines. The Company also utilizes  an  internal
audit   department  to  assure  adherence  to  its   underwriting
guidelines.  The Company utilizes the branch model  which  allows
for  contract  purchasing to be done on the  branch  level.  Each
Branch Manager will interpret the guidelines differently and as a
result  the  common risk characteristics will be the same  on  an
individual  branch level but not necessarily compared to  another
branch.

   In analyzing a pool, the Company considers the performance  of
prior  pools originated by the branch office, the performance  of
prior  Contracts purchased from the dealers whose  Contracts  are
included  in the current pool, the credit rating of the borrowers
under  the Contracts in the pool, and current market and economic
conditions.   Each pool is analyzed monthly to determine  if  the
loss reserves are adequate, and adjustments are made if they  are
determined to be necessary.  As of June 30, 2003, the Company had
established  reserves for losses on Contracts of  $19,094,465  or
13.75% of gross outstanding receivables under the Contracts.


<PAGE> 17


The  Company  has  experienced higher losses in the  last  twelve
months,  however,  not  to the extent it  had  anticipated.  This
resulted in more mature static pools having reserves in excess of
current estimates needed to liquidate these pools. The Company is
in  the  process  of  accreting these excess  reserves  over  the
remaining  life  of  the  pools. The  Company's  overall  reserve
percentage has increased from 13.17% of gross receivables  as  of
March  31,  2003 to 13.48% of gross receivables as  of  June  30,
2003.  Management  has concluded that the reserve  level  remains
adequate.


<PAGE> 18

The following table sets forth a reconciliation of the changes in
dealer discount on Contracts.

<TABLE>
<CAPTION>
                                 Three months ended June 30,
                                    2003             2002
                                -----------------------------
<S>                             <C>             <C>
Balance at beginning of period   $12,394,089     $11,259,898
Discounts acquired on new volume   3,067,849       2,542,434
Losses absorbed                   (1,856,531)     (1,789,251)
Recoveries                           277,063         249,029
Reserves accreted                   (524,125)       (575,716)
                                 ----------------------------
Balance at end of period         $13,358,345     $11,686,394
                                 ============================
Reserves as a percent of gross
 Finance receivables                   9.62%           9.76%

</TABLE>

The following table sets forth a reconciliation of the changes in
the allowance for credit losses on Contracts.

<TABLE>
<CAPTION>
                                Three months ended June 30,
                                    2003         2002
                                ----------------------------
<S>                            <C>           <C>
Balance at beginning of period  $5,428,681    $4,105,174
Current period provision           519,454       491,464
Losses absorbed                   (212,015)     (143,892)
Balance at end of period        $5,736,120    $4,452,746
                                -------------------------
Reserves as a  percent
of gross Finance receivables         4.13%         3.72%
                                =========================

</TABLE>

The following table sets forth a reconciliation of the changes in
the allowance for credit losses on Direct loans.

<TABLE>

                                Three months ended June 30,
                                       2003         2002
                                ----------------------------
<S>                                 <C>           <C>
Balance at beginning of period       $176,126      $200,612
Current period provision               60,545        55,602
Losses absorbed                       (41,250)      (30,596)
Recoveries                              5,595         6,464
Reserves accreted                           -        (5,335)
                                  --------------------------
Balance at end of period             $201,016      $226,747
                                  ==========================
Reserves as a  percent
of gross Finance receivables            4.62%         4.62%
                                  ===========================

Total reserves at end of period   $19,295,481   $16,365,887
                                 ============================
Reserves as a percent of gross
  Finance receivables                  13.48%        13.13%
                                 ============================
</TABLE>

<PAGE> 19


The  average dealer discount associated with new volume  for  the
three months ended June 30, 2003 was 8.96% compared to 8.83%  for
the  three  months  ended June 30, 2002.  The  Company  does  not
consider  these changes to be material and such changes  are  not
the result of any change in buying philosophy or competition.

The  provision for credit losses increased for the  three  months
ended  June  30,  2003 to $579,999 compared to $547,066  for  the
three months ended June 30, 2002. This increase is attributed  to
an  increase  in  the Net Finance Receivable balance  from  $78.4
million at June 30, 2002 to $89.7 million at June 30, 2003. To  a
lesser  extent,  the provision for credit losses increased  as  a
result  of  an increase in the charge off rate of certain  static
pools.  These  pools were reaching reserve levels  below  Company
estimates to absorb future credit losses. In these instances, the
Company  increased  reserves related  to  specific  static  pools
through a direct charge to income through the provision.

The  Company's  losses  as a percentage of liquidation  decreased
from 7.90% for the three months ended June 30, 2002 to 7.76%  for
the  three  months  ended  June 30, 2003.  The  Company  believes
portfolio  performance will weaken if the labor market  continues
to  produce  further loss of jobs as evidenced by the  July  2003
unemployment  numbers  released by the  federal  government.  The
Company  does not believe there have been any significant changes
in  loan  concentrations, terms or quality of contracts purchased
during  the three months ended that would have contributed  to  a
change  in  the percentage of losses. The delinquency  percentage
for contracts more than thirty days past due for the three months
ended  June 30, 2003 increased to 2.66% from 2.42% for the  three
months ended June 30, 2002. The delinquency percentage for direct
loans  more than thirty days past due for the three months  ended
June  30, 2003 increased to 2.32% from 0.95% for the three months
ended  June  30,  2002.  The Company does  not  give  significant
consideration to short-term trends in delinquency when evaluating
reserve  levels. Delinquency percentages tend to be very volatile
and often are not necessarily an indication of future losses. The
Company  utilizes  a  static pool approach to  analyze  portfolio
performance  and  looks at specific pool performance  and  recent
trends  as  leading  indicators  to  future  performance  of  the
portfolio.

Recoveries as a percentage of current year losses were 13.40% for
the  three months ended June 30, 2003 compared to 13.01% for  the
three  months  ended June 30, 2002. Recoveries as  a  percent  of
losses  increased during the comparable quarters, however as  the
Company  continues to expand, it expects recoveries as a  percent
of  losses  to  decline.  The Company anticipates  difficulty  in
implementing its loss recovery model in geographic areas  further
away from the Company's origin.

Reserves accreted into income for the three months ended June 30,
2003  were  $524,125 compared to $581,051 for  the  three  months
ended  June 30, 2002. The amount and timing of reserves  accreted
into  income is a function of individual static pool performance.
The Company has seen some deterioration in the performance of the
portfolio,  more  specifically;  static  pools  more  than  fifty
percent liquidated have seen an increase in the default rate when
compared  to  prior  year  pool  performance  during  their  same
liquidation  cycle.  The  Company  attributes  this  increase  to
overall general economic conditions and more specifically to  the
increased unemployment rate in the Company's markets.


<PAGE> 20

      The  current  unemployment rate compared to last  year  has
risen.  The  Company believes there is a correlation between  the
unemployment rate and future portfolio performance. The number of
voluntary  repossessions has increased  slightly  for  the  three
months ended June 30, 2003 as compared to the three months  ended
June  30,  2002. The number of bankruptcy filings has also  risen
slightly  during the three months ended June 30, 2003 as compared
to  the  three  months ended June 30, 2002. As a  result  of  the
above,  the  Company  has  raised its current  reserve  level  to
anticipate a modest decline in portfolio performance.

The  amount  of future unearned income represents the  amount  of
finance  charges the Company expects to fully earn over the  life
of  the current portfolio, and is computed as the product of  the
contract  rate, the contract term, and the contract  amount.  The
Company  aggregates the contracts purchased during a  three-month
period  for  all of its branch locations. After the  analysis  of
purchase  date accounting is complete, any uncollectable  amounts
would be contemplated in the allowance for credit losses.


<PAGE> 21

   The following tables present certain information regarding the
delinquency  rates  experienced by the Company  with  respect  to
Contracts and under its direct consumer loan program:


<TABLE>
<CAPTION>

                        Three Months Ended     Three Months Ended
                          June 30, 2003         June 30, 2002
                      -----------------------------------------------
<S>               <C>   <C>   <C>          <C> <C>        <C>
Contracts
Gross Balance
 Outstanding             $138,823,707           $119,737,365

                     Dollar            Dollar
Delinquencies        Amount  Percent*      Amount Percent *

30 to 59 days     $ 2,647,022   1.91%        $ 1,896,347    1.59%
60 to 89 days         736,415   0.53%            827,527    0.69%
90   +  days          307,405   0.22%            173,315    0.14%
                  -----------  ------       ------------   ------
Total
 Delinquencies     $3,690,842                 $2,897,189

*Total Delinquencies
 as percent of
 outstanding balance            2.66%                       2.42%

Direct Loans
Gross Balance
 Outstanding      $ 4,346,709                $ 4,906,633

Delinquencies

30 to 59 days         $ 49,582  1.14%           $ 27,245    0.56%
60 to 89 days           12,760  0.29%             14,427    0.29%
90 + days               38,609  0.89%              5,042    0.10%
                      --------  -----           --------   ------
Total
 Delinquencies       $ 100,951                  $ 46,714

*Total Delinquencies
 as a percent of
 outstanding balance            2.32%                       0.95%

</TABLE>

  The  delinquency percentage for contracts more than thirty days
past  due  for  the three months ended June 30,  2003  was  2.66%
compared  to 2.42% for the three months ended June 30, 2002.  The
delinquency  percentage for direct loans more  than  thirty  days
past  due  for  the three months ended June 30,  2003  was  2.32%
compared to 0.95% for the three months ended June 30, 2002.

  The  Company  does  not give much consideration  to  short-term
trends in delinquency percentages when evaluating reserve levels.
Delinquency  percentages tend to be very volatile and  often  are
not  necessarily  an  indication of future  losses.  The  Company
estimates  future  portfolio performance by  considering  several
factors.  The most significant factors are described as  follows.
The  Company analyzes historical static pool performance for each
branch location when determining appropriate reserve levels.  The
Company  utilizes  internal branch audits  as  an  indication  to
future static pool performance. (See pg.7 of the Company's  March
31, 2003 10-KSB "Underwriting Guidelines" for more information on
branch location audits) The Company also considers such things as
the current unemployment rate in markets the Company operates in,
the  percentage of voluntary repossessions as compared  to  prior
periods,  the  percentage of bankruptcy filings  as  compared  to
prior periods and other leading economic indicators.


<PAGE> 22


Income Taxes

   The Company's effective tax rate increased from 37.27% for the
three months ended June 30, 2002 compared to 37.94% for the three
months ended June 30, 2003. This increase is primarily attributed
to higher state income tax rates in the state of Ohio.


Liquidity and Capital Resources

The Company's cash flows for the three months ended June 30, 2002
and June 30, 2001 are summarized as follows:

<TABLE>
<CAPTION>

                             Three  months ended   Three months ended
                                June 30, 2003      June 30, 2002
                            --------------------------------------------
<S>                           <C>                 <C>
Cash provided by (used in):
 Operating Activities -         $  2,621,943       $ 1,686,634
 Investing Activities -
 (primarily purchase
  of Contracts)                   (4,176,207)       (2,930,792)
 Financing Activities              1,806,338         1,896,906

 Net increase in cash                252,074           652,748


</TABLE>

      The  Company's  primary use of working capital  during  the
three  months ended June 30, 2003 was the funding of the purchase
of  Contracts.  The Contracts were financed substantially through
borrowings on the Company's Line of Credit. The Line of Credit is
secured  primarily  by  Contracts, and available  borrowings  are
based  on  a percentage of qualifying Contracts. As of  June  30,
2003  the Company had approximately $13.0 million available under
the  Line of Credit. Since inception, the Company has also funded
a  portion  of its working capital needs through cash flows  from
operating activities.

      The  self-liquidating nature of installment  Contracts  and
other loans enables the Company to assume a higher debt-to-equity
ratio  than  in most businesses. The amount of debt  the  Company
incurs from time to time under these financing mechanisms depends
on  the Company's need for cash and it's ability to borrow  under
the  terms  of  its  Line  of Credit. The Company  believes  that
borrowings  available under the Line of Credit as  well  as  cash
flow   from  operations  and,  if  necessary,  the  issuance   of
additional  subordinated  debt and, or  the  sale  of  additional
securities in the capital markets, will be sufficient to meet its
short term funding needs.

   The Company renewed its credit facility on June 28, 2002.  The
loan  agreement expires November 30, 2004 and bears  interest  at
the  prime rate and offers several LIBOR pricing options. The new
loan  agreement released Bank One as a secondary bank  and  added
First Tennessee Bank. The Company is pleased with its new banking
relationship  and  believes  it will  be  beneficial  for  future
expansion.



<PAGE> 23



Future Expansion

       The   Company   currently  operates  twenty-seven   branch
locations, fifteen in the State of Florida, three in the State of
Georgia,  three in the State of North Carolina, one in the  state
of  South Carolina and five in the state of Ohio.  Each office is
budgeted  (size of branch, number of employees and  location)  to
handle  up  to 1,000 accounts and up to $7,500,000 in outstanding
receivables.  To  date  none of our branches  have  reached  this
capacity.

      The  Company intends to continue its expansion through  the
purchase of additional Contracts and the expansion of its  direct
consumer loan program. As the branches continue to add customers,
the  size  of the loan portfolio will continue to grow. With  the
added volume in each branch and as the company adds new branches,
it  will be necessary for the Company to increase the size of its
Line of Credit.

 The Company currently intends to continue its expansion through
the  purchase of additional Contracts and the expansion  of  its
direct consumer loan program.  In order to increase the size  of
the  Company's portfolio of Contracts, it will be necessary  for
the  Company to open additional branch offices and increase  the
size  of  its revolving Line of Credit arrangement, either  with
its current lender or another lender.  The Company, from time to
time,  has  and  will meet with private investors and  financial
institutions that specialize in investing in subordinated  debt.
The  Company  also  intends  to continue  its  policy  of  using
earnings  from operations to purchase Contracts or  make  direct
consumer loans. The Company believes that opportunity for growth
continues  to  exist in Florida, Georgia, North Carolina,  South
Carolina   and  Ohio  and  intends  to  continue  its  expansion
activities  in those states. The Company is currently  expanding
its  automobile financing program in the State of Michigan.  The
Company  has targeted its first geographic locations within  the
State of Michigan where it believes there is a sufficient market
for  its  automobile financing program. The Company is currently
purchasing  Contracts  in  the State of  Michigan  utilizing  an
employee who resides in the State of Michigan. This employee  is
developing  their respective market in Michigan and the  Company
is   utilizing  its  Central  Buying  Office  at  its  Corporate
Headquarters  to purchase, process and service these  Contracts.
The  Company's  strategy is to monitor  these  new  markets  and
ultimately   decide  where  and  when  to  open  actual   branch
locations. No assurances can be given, however, that any further
such  expansion will occur. The Company is also analyzing  other
markets  in  States the Company does not currently  operate  in,
however no assurance can be given that any expansion will  occur
in these new markets.

Forward-Looking Information

  This  10-QSB  contains various forward-looking  statements  and
information   that   are  based  on  management's   beliefs   and
assumptions,  as  well  as  information  currently  available  to
management.   When used in this document, the words "anticipate",
"estimate",  "expect", and similar expressions  are  intended  to
identify   forward-looking  statements.   Although  the   Company
believes  that the expectations reflected in such forward-looking
statements  are  reasonable, it can give no assurance  that  such
expectations  will  prove  to be correct.   Such  statements  are
subject to certain risks, uncertainties and assumptions.   Should
one  or  more  of  these risks or uncertainties  materialize,  or
should underlying assumptions prove incorrect, actual results may
vary  materially from those anticipated, estimated  or  expected.
Among  the  key  factors that may have a direct  bearing  on  the
Company's operating results are fluctuations in the economy,  the
degree  and nature of competition, demand for consumer  financing
in  the markets served by the Company, the Company's products and
services,   increases  in  the  default  rates   experienced   on
Contracts,  adverse regulatory changes in the Company's  existing
and future markets, the Company's ability to expand its business,
including its ability to complete acquisitions and integrate  the
operations   of  acquired  businesses,  to  recruit  and   retain
qualified  employees, to expand into new markets and to  maintain
profit margins in the face of increased pricing competition.

Part 1.  Item 3 Controls and Procedures

  Within the 90-day period prior to the filing of this report, an
evaluation  was carried out under the supervision  and  with  the
participation   of  the  Company's  management,   including   the
Company's Chief Executive Officer and Chief Financial Officer, of
the  effectiveness of the design and operation of  the  Company's
disclosure controls and procedures (as defined in Rule  13a-14(c)
under  the  Securities  Exchange Act of  1934).  Based  upon  the
evaluation,  the  Chief  Executive Officer  and  Chief  Financial
Officer  concluded  that  the  design  and  operation  of   these
disclosure   controls   and  procedures   were   effective.    No
significant changes were made in the Company's internal  controls
or  in  other  factors  that  could  significantly  affect  these
controls subsequent to the date of their evaluation.

<PAGE> 24


                   Part II - Other Information


Item 1.   Legal Proceedings - None

Item 2.   Changes in Securities

Item 3.   Defaults upon Senior Securities - None

Item 4.   Submission of Matters to a Vote of Security
          Holders - None

Item 5.   Other Information - On August 11th, 2003  the  Company
          announced its  Board  of Directors has approved a $.10
          per  share  cash  dividend  payable semi-annual at the
          rate of $.05 per  share.  The record date has been set
          for  September  8,  2003  and  the  payment  date   is
          September 22, 2003.

Item 6.  (a) Exhibits - See exhibit index following the
                        signature page.

         (b)  Reports on Form 8-K -  None

<PAGE> 25

                           SIGNATURES

   In  accordance with the requirements of the Securities Act  of
1934, the Registrant certifies that it has reasonable grounds  to
believe that it meets all of the requirements for filing on  Form
10-QSB  and authorized this Report to be signed on its behalf  by
the undersigned, in the City of Clearwater, State of Florida,  on
August 14, 2003.


                    NICHOLAS FINANCIAL, INC.
                          (Registrant)


Date: August 14, 2003            /s/Peter L. Vosotas
                                 ---------------------------
                                 Peter L. Vosotas
                                 Chairman, President, Chief
                                 Executive Officer
                                 (Principal Executive
                                  Officer)


Date: August 14, 2003            /s/Ralph T. Finkenbrink
                                 --------------------------
                                 Ralph T. Finkenbrink
                                 (Principal Accounting Officer)

<PAGE> 26


                          EXHIBIT INDEX

Item 13. Exhibits and Reports on Form 8-K



3.1  Articles of Incorporation and By-Laws of Nicholas Financial,
      Inc.

     Incorporated by reference to the Company's Form 10-SB (File
     No. 0-26680) filed on March 13, 1996

4.1  Stock Certificate

     Incorporated  by  reference to Exhibit 4.1 to the Company's
     Form 10-SB (File No. 0-26680) filed on March 13, 1996

10.1.1  Loan  and Security Agreement dated March 31, 1993 between
        BA Business Credit, Inc. and Nicholas Financial, Inc.

        Incorporated by reference to Exhibit 10.1.1 to the
        Company's Form 10-SB (File No. 0-26680) filed on
        March 13, 1996

10.1.2  Amendment No. 1 to Loan Agreement dated January 14, 1994

        Incorporated by reference to Exhibit 10.1.2 to the
        Company's Form 10-SB (File No. 0-26680) filed on
        March 13, 1996

10.1.3  Temporary Line Increase Agreement dated Mach 28, 1994

        Incorporated by reference to Exhibit 10.1.3 to the
        Company's Form 10-SB (File No. 0-26680) filed on
        March 13, 1996

10.1.4  Amendment No. 2 to Loan Agreement dated June 3, 1994

        Incorporated by reference to Exhibit 10.1.4 to the
        Company's Form 10-SB (File No. 0-26680) filed on
        March 13, 1996

10.1.5  Amendment No. 3 to Loan Agreement dated July 5, 1994

        Incorporated by reference to Exhibit 10.1.5 to the
        Company's Form 10-SB (File No. 0-26680) filed on
        March 13, 1996

10.1.6  Amendment No. 4 to Loan Agreement dated March 31, 1995

        Incorporated by reference to Exhibit 10.1.6 to the
        Company's Form 10-SB (File No. 0-26680) filed on
        March 13, 1996

10.1.7  Amendment No. 5 to Loan Agreement  dated July 13, 1995

        Incorporated by reference to Exhibit 10.1.7 to the
        Company's Form 10-KSB for the fiscal year ended March
        31, 1996

10.1.8  Amendment No. 6 to Loan Agreement  dated May 13, 1996

        Incorporated by reference to Exhibit 10.1.8 to the
        Company's Form 10-QSB for the three months ended
        June 30, 1996

10.1.9  Amendment No. 7 to Loan Agreement dated July 5, 1997

        Incorporated by reference to Exhibit 10.1.9 to the
        Company's Form 10-QSB for the three months ended
        September 30, 1997

<PAGE> 27

10.1.10 Amendment No. 8 to Loan Agreement dated September 18,
         1998

        Incorporated by reference to Exhibit 10.2.0 to the
        Company's Form 10-QSB for the three months ended
        September 30, 1998

10.1.11 Amendment No. 9 to Loan Agreement dated November 25,
         1998

        Incorporated by reference to Exhibit 10.2.1 to the
        Company's Form 10-QSB for the three months ended
        December 31, 1998

10.1.12 Amendment No. 10 to Loan Agreement dated November 24,
         1999

        Incorporated by reference to Exhibit 10.2.2 to the
        Company's Form 10-QSB for the three months ended
        December 31, 1999

10.1.13 Amendment No. 11 to Loan Agreement dated
         August 1, 2000

        Incorporated by reference to Exhibit 10.1.13 to the
        Company's Form 10-KSB for the year ended
        March 31, 2001

10.1.14 Amendment No. 12 to Loan Agreement dated March 16, 2001

        Incorporated by reference to Exhibit 10.1.14 to the
        Company's Form 10-KSB for the year ended  March 31, 2001

10.3.1  Employee Stock Option Plan

        Incorporated by reference to the Company's 1999
        Annual proxy statement dated June 29, 1999

10.3.2  Non-Employee Stock Option Plan

        Incorporated by reference to the Company's 1999
        Annual proxy statement dated June 29, 1999

10.4.1  Employment Contract, dated November  22,  1999,  between
        Nicholas  Financial, Inc. and Ralph Finkenbrink, Senior
        Vice President of Finance.

        Incorporated by reference to Exhibit 10.2.1 to the
        Company's Form 10-QSB for the three months ended
        December 31, 1999

10.4.2  Employment Contract, dated March 16, 2001, between
        Nicholas Financial, Inc. and Peter L. Vosotas President
        & Chief Executive Officer.

        Incorporated by reference to the Company's 2001 Annual proxy
        statement dated July 2, 2001

21      Subsidiaries of Nicholas Financial, Inc.

        Incorporated by reference to the Company's Form 10-SB (File
        No. 0-26680) filed on March 13, 1996

24      Powers of Attorney (included on signature page hereto)

99.1    Written Statement of the Chief Executive Officer Pursuant to 18
         U.S.C.  1350

99.2    Written Statement of the Chief Financial Officer Pursuant to 18
         U.S.C.  1350

<PAGE> 28

                          CERTIFICATION

I, Peter L. Vosotas, certify that:

     1. I have reviewed this Quarterly Report on Form 10-QSB
         of Nicholas Financial, Inc.;

     2. Based on my knowledge, this report does not contain any untrue
        statement of a material fact or omit to state a material fact
        necessary  to  make the statements made, in light  of  the
        circumstances under which such statements were  made,  not
        misleading with respect to the period covered by this report;

     3. Based on my knowledge, the financial statements, and other
        financial information included in this report, fairly present in
        all material respects the financial condition, results  of
        operations and cash flows of the registrant as of, and for, the
        periods presented in this report;

     4. The registrant's other certifying officers and I are
        responsible for establishing and maintaining disclosure controls
        and procedures (as defined in Exchange Act Rules 13a-15(e) and
        15d-15(e) and internal control over financial reporting
        (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for
         the registrant and have:

          a)Designed such disclosure controls and procedures, or caused such
            disclosure controls and procedures to be designed under our
            supervision, to ensure that material information relating to the
            registrant, including its consolidated subsidiaries, is made
            known to us by others within those entities, particularly during
            the period in which this report is being prepared;

          b)Designed such internal control over financial reporting, or
            caused such internal control over financial reporting to be
            designed under our supervision, to provide reasonable assurance
            regarding the reliability of financial reporting and the
            preparation of financial statements for external purposes in
            accordance with generally accepted accounting principles;

          c)Evaluated the effectiveness of the registrant's disclosure
            controls and procedures and presented in this report our
            conclusions about the effectiveness of the disclosure controls
            and procedures as of the end of the period covered by this report
            based on such evaluation; and

          d)Disclosed in this report any change in the registrant's internal
            control over financial reporting that occurred during the
            registrant's most recent fiscal quarter that has materially
            affected, or is reasonably likely to materially affect, the
            registrant's internal control over financial reporting; and

     5. The registrant's other certifying officers and I have disclosed,
        based on our most recent evaluation of internal control over
        financial reporting, to the registrant's auditors and the audit
        committee  of registrant's board of directors (or  persons
        performing the equivalent functions):

          a)All significant deficiencies and material weaknesses in the
            design or operation of internal controls over financial reporting
            which are reasonably likely to adversely affect the registrant's
            ability to record, process, summarize and report financial
            information; and

          b)Any fraud, whether or not material, that involves management
            or other employees who have a significant role in the
            registrant's internal controls over financial reporting.


Date: August 14, 2003              /s/Peter L. Vosotas
                                   ----------------------------
                                   President  &  Chief  Executive
                                   Officer

<PAGE> 29

                         CERTIFICATION

I, Ralph T. Finkenbrink, certify that:

     1. I have reviewed this Quarterly Report on Form 10-QSB
         of Nicholas Financial, Inc.;

     2. Based on my knowledge, this report does not contain any untrue
        statement of a material fact or omit to state a material fact
        necessary  to  make the statements made, in light  of  the
        circumstances under which such statements were  made,  not
        misleading with respect to the period covered by this report;

     3. Based on my knowledge, the financial statements, and other
        financial information included in this report, fairly present in
        all material respects the financial condition, results  of
        operations and cash flows of the registrant as of, and for, the
        periods presented in this report;

     4. The registrant's other certifying officers and I are
        responsible for establishing and maintaining disclosure controls
        and procedures (as defined in Exchange Act Rules 13a-15(e) and
        15d-15(e) and internal control over financial reporting
        (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for
         the registrant and have:

          a)Designed such disclosure controls and procedures, or caused such
            disclosure controls and procedures to be designed under our
            supervision, to ensure that material information relating to the
            registrant, including its consolidated subsidiaries, is made
            known to us by others within those entities, particularly during
            the period in which this report is being prepared;

          b)Designed such internal control over financial reporting, or
            caused such internal control over financial reporting to be
            designed under our supervision, to provide reasonable assurance
            regarding the reliability of financial reporting and the
            preparation of financial statements for external purposes in
            accordance with generally accepted accounting principles;

          c)Evaluated the effectiveness of the registrant's disclosure
            controls and procedures and presented in this report our
            conclusions about the effectiveness of the disclosure controls
            and procedures as of the end of the period covered by this report
            based on such evaluation; and

          d)Disclosed in this report any change in the registrant's internal
            control over financial reporting that occurred during the
            registrant's most recent fiscal quarter that has materially
            affected, or is reasonably likely to materially affect, the
            registrant's internal control over financial reporting; and

     5. The registrant's other certifying officers and I have disclosed,
        based on our most recent evaluation of internal control over
        financial reporting, to the registrant's auditors and the audit
        committee  of registrant's board of directors (or  persons
        performing the equivalent functions):

          a)All significant deficiencies and material weaknesses in the
            design or operation of internal controls over financial reporting
            which are reasonably likely to adversely affect the registrant's
            ability to record, process, summarize and report financial
            information; and

          b)Any fraud, whether or not material, that involves management
            or other employees who have a significant role in the
            registrant's internal controls over financial reporting.



Dated: August 14, 2003           /s/Ralph T. Finkenbrink
                                 ---------------------------
                                 Senior Vice President


<PAGE> 30




                         Exhibit 99.1

        Written Statement of the Chief Executive Officer
                   Pursuant to 18 U.S.C.  1350

   Solely for the purposes of complying with 19 U.S.C.  1350, I ,
the  undersigned  Chief Executive Officer of Nicholas  Financial,
Inc. (the "Company"), hereby certify, based on my knowledge, that
the  Quarterly  Report  on Form 10-Qsb of  the  Company  for  the
quarter  ended  June 30, 2003 (the "Report") fully complies  with
the  requirements of Section 13(a) of the Securities Exchange Act
of  1934  and  that  information contained in the  Report  fairly
presents,  in all material respects, the financial condition  and
results of operations of the Company.



/s/Peter L. Vosotas
--------------------------
Peter L. Vosotas
Chief Executive Officer
August 14, 2003

<PAGE>
                           Exhibit 99.2

        Written Statement of the Chief Financial Officer
                   Pursuant to 18 U.S.C.  1350

   Solely for the purposes of complying with 19 U.S.C.  1350, I ,
the  undersigned  Chief Financial Officer of Nicholas  Financial,
Inc. (the "Company"), hereby certify, based on my knowledge, that
the  Quarterly  Report  on Form 10-Qsb of  the  Company  for  the
quarter  ended  June 30, 2003 (the "Report") fully complies  with
the  requirements of Section 13(a) of the Securities Exchange Act
of  1934  and  that  information contained in the  Report  fairly
presents,  in all material respects, the financial condition  and
results of operations of the Company.



/s/Ralph Finkenbrink
-------------------------
Ralph Finkenbrink
Chief Financial Officer
August 14, 2003