<PAGE> 1


         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, 2000



    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, 2000 there were 2,342,008 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, 2000.................................3

         Condensed Consolidated Statements of
          Income for  the  three months ended
          June 30, 2000 and 1999..............................4

         Condensed Consolidated Statements of
          Cash Flows  for  the  three  months
          ended June 30, 2000 and 1999........................5

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

Item 2.  Management's Discussion and Analysis of Financial
          Condition and Results of Operations................10

Part II. Other Information

Item 1.  Legal Proceedings...................................15

Item 2.  Changes in Securities...............................15

Item 3.  Defaults upon Senior Securities.....................15

Item 4.  Submission of Matters to a Vote of
          Security Holders...................................15

Item 5.  Other Information...................................15

Item 6.  Exhibits and Reports on Form 8-K....................15

         Signatures..........................................16

         Exhibit Index.......................................17


<PAGE> 3

<TABLE>
<CAPTION>

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

                                                  June 30,
                                                    2000
                                                 ---------
<S>                                              <C>
Assets

Cash                                             $ 104,894
Finance receivables, net                        57,425,609
Accounts receivable                                 27,603
Prepaid expenses and other assets                  502,938
Property and equipment, net                        340,212
Deferred income taxes                            1,190,888
                                               -----------
Total assets                                   $59,592,144
                                               ===========

Liabilities

Line of credit                                 $43,214,549
Notes payable - related party                    1,118,008
Accounts payable                                 2,890,944
Deferred revenues                                  570,717
Other liabilities                                   16,232
                                               -----------
                                                47,810,450

Shareholders' equity

Preferred stock, no par: 5,000,000 shares
authorized;none issued and outstanding
Common stock, no par: 50,000,000 shares
authorized; 2,342,008 shares issued and
outstanding                                      3,662,697
Retained earnings                                8,118,997
                                               -----------
                                                11,781,694
                                               -----------
Total liabilities and shareholders' equity     $59,592,144
                                               ===========

See accompanying notes.

</TABLE>
<PAGE> 4
<TABLE>
<CAPTION>

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


                                         Three months ended
                                               June 30
                                          2000        1999
                                      -----------------------
<S>                                   <C>         <C>
Revenue:
Interest income on
 finance receivables                   $3,909,514  $2,835,182
Sales                                     116,810     135,448
                                      -----------------------
                                        4,026,324   2,970,630

Expenses:
Cost of sales                              25,857      15,531
Marketing                                  98,279      91,794
Administrative                          1,524,134   1,150,561
Provision for credit losses               371,710     250,678
Depreciation and amortization              27,000      24,140
Interest expense                          835,023     623,509
                                      -----------------------
                                        2,882,003   2,156,213
                                      -----------------------
Operating income before income taxes    1,144,321     814,417

Income tax expense (benefit):
Current                                   516,007     437,270
Deferred                                  (75,000)   (125,000)
                                      -----------------------
                                          441,007     312,270
                                      -----------------------
Net Income                               $703,314    $502,147
                                      =======================

Earnings per share - basic                  $0.30       $0.21
                                      =======================
Earnings per share - diluted                $0.28       $0.20
                                      =======================

See accompanying notes.

</TABLE>
<PAGE> 5

<TABLE>
<CAPTION>

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


                                      Three months ended June 30
                                           2000         1999
                                      --------------------------
<S>                                   <C>            <C>
Operating activities
Net income                             $ 703,314      $  502,147

Adjustments to reconcile net
 income to net cash provided by
 operating activities:
Depreciation of property and equipment    27,000          24,140
Provision for credit losses              371,710         250,678
Deferred income taxes                    (75,000)       (125,000)

Changes in operating assets
 and liabilities:
Accounts receivable                       (6,681)            190
Prepaid expenses and other assets       (110,254)        (35,704)
Deferred revenues                         51,999          25,683
Accounts payable                        (359,648)        199,887
Other liabilities                              -          (1,625)
Income taxes payable                     510,006         376,858
                                      --------------------------
Net cash provided by
 operating activities                  1,112,446       1,217,254

Investing activities
Increase in finance receivables,
 net of principal collected           (5,782,212)     (2,233,361)
Purchase of property and equipment       (35,618)        (15,497)
                                      --------------------------
Net cash used in investing activities (5,817,830)     (2,248,858)

Financing activities
Repayment of notes payable
 - related party                        (200,000)              -
Net proceeds from line of credit       4,800,000         791,259
Repurchase of common stock               (48,905)              -
                                      --------------------------
Net cash provided by financing
 activities                            4,551,095         791,259
                                      --------------------------

Net decrease in cash                    (154,289)       (240,345)

Cash, beginning of period                259,183         509,418
                                      --------------------------
Cash, end of period                     $104,894        $269,073
                                      ==========================

See accompanying notes.

</TABLE>
<PAGE> 6

                     Nicholas Financial, Inc.
     Notes to the Condensed Consolidated Financial Statements
                           (Unaudited)
                          June 30, 2000


1. Basis of Presentation

The   accompanying  unaudited  condensed  consolidated  financial
statements  of Nicholas Financial Inc (the "Company")  have  been
prepared   in  accordance  with  generally  accepted   accounting
principles  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  generally   accepted
accounting principles 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, 2000 are not necessarily indicative of the results that
may  be  expected for the year ending March 31, 2001. For further
information,  refer to the consolidated financial statements  and
footnotes thereto included in the Company's Annual Report on Form
10-K for the year ended March 31, 2000.

2. 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

<TABLE>
<CAPTION>

                     Nicholas Financial, Inc.
     Notes to the Condensed Consolidated Financial Statements
                            (Unaudited)
                           June 30, 2000



                                        Three months ended
                                             June 30,
                                         2000        1999
                                      --------------------
<S>                                   <C>        <C>
Numerator:

 Numerator for basic earnings per
  share - Net income available to
  common stockholders                  $703,314   $502,147

 Effect of dilutive securities:
    Convertible debt                     15,554     24,909
                                      --------------------
 Numerator for dilutive earnings
  per share - income available to
  common stockholders after
  assumed conversions                  $718,868   $527,056
                                      ====================
Denominator:
 Denominator for basic earnings per
  share - weighted average shares     2,351,709  2,351,608
 Effect of dilutive securities: (A)
   Employee stock options                70,433     31,876
   Convertible debt                     180,556    264,798
                                      --------------------
 Dilutive potential common shares       250,989    296,674
                                      --------------------

 Denominator for diluted earnings
  per share - adjusted weighted-
  average sharesand assumed
  conversions                         2,602,698  2,648,282
                                      ====================

Earnings per share - basic                $0.30      $0.21
                                      ====================
Earnings per share - diluted              $0.28      $0.20
                                      ====================

Footnote A:
       The  following  options  and
warrants were outstanding  but  not
included  in  the  computation   of
diluted  earnings per share because
the exercise price was greater than
the  average  market price  of  the
common  shares and, therefore,  the
effect would be antidilutive.

    Options                              35,500
    Warrants                            333,333    333,333

</TABLE>
<PAGE> 8


                     Nicholas Financial, Inc.
     Notes to the Condensed Consolidated Financial Statements
                            (Unaudited)
                           June 30, 2000




3. Finance Receivables

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

<TABLE>
   <S>                                      <C>
    Finance receivables, gross contract      $92,040,369
    Less:
       Unearned interest                     (22,166,164)
                                             -----------
                                              69,874,205

       Nonrefundable dealer reserves         (10,422,395)
       Allowance for credit losses            (2,026,201)
                                             -----------
       Finance receivables, net              $57,425,609
                                             ===========

</TABLE>

The terms of the receivables range from 12 to 60 months and bear
a weighted average effective interest rate of 24%.


4. Line of Credit

The  Company has a $45 million line of credit facility (the Line)
which  expires  on November 30, 2002. Borrowings under  the  Line
bear  interest  at the prime rate. 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  1.75%.  Pledged as collateral for this credit facility  are
all   of   the  assets  of  Nicholas  Financial,  Inc.  and   its
subsidiaries.

On May 11, 1999 the  Company  entered  into an interest rate swap
with  a  notional amount of $10 million at a fixed rate of 5.81%,
maturing on  May  24, 2002. On  May  21, 1999 the Company entered
into two interest  rate swaps with notional amounts of $5 million
each, at fixed rates of 5.81% and 6.08%, maturing on May 24, 2001
and May 24, 2004, respectively.

On  August  18,  1999 the Company terminated a  $5  million  swap
maturing on May 24, 2004 in exchange for $52,000. In addition the
Company entered into an interest rate swap with a notional amount
of  $10  million at a fixed rate of 5.80%, provided that  30  day
libor  does not exceed 8%, maturing on May 24, 2003. In the event
30  day  libor exceeds 8.00%, the fixed rate of 5.80% would  swap
back  to  the  variable rate for all periods where 30  day  libor
exceeds 8.00%.

On May 17, 2000  the  Company  entered into an interest rate swap
with a  notional  amount of $10 million at a fixed rate of 6.87%,
provided that 30 day  libor does not exceed 7.7%, maturing on May
17, 2004. In the event 30 day libor exceeds 7.70%, the fixed rate
of 6.87% would  swap  back  to  the variable rate for all periods
where 30 day libor exceeds 7.70%.

On  July 6th, 2000 the Company successfully increased its  credit
facility. The new agreement increases the total facility  to  $60
million.

<PAGE> 9
                     Nicholas Financial, Inc.
     Notes to the Condensed Consolidated Financial Statements
                            (Unaudited)
                           June 30, 2000

<TABLE>
<CAPTION>

5. Notes Payable - Related Party

Notes payable consisted of the following:

<S>                                                       <C>
Notes payable, due through January 2002, unsecured,
subordinated  to the Line, with interest at varying
rates  up  to 12%  with  quarterly  and  semiannual
interest payments. The notes are convertible at the
option of the holder, into common shares at prices
from $4.50 to $6.00 per share.                             $850,000

Note payable, unsecured, interest at 12%, principal
and interest due through August 2001, at which time
the entire principal balance is due.                        268,008
                                                         ----------
                                                         $1,118,008
                                                         ==========
</TABLE>
<PAGE> 10

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, 2000 to $703,314 from $502,147 for the three month
period  ended June 30, 1999. Earnings were favorably impacted  by
an  increase in the outstanding loan portfolio and net  portfolio
yield.   The   Company's  NDS  subsidiary  did   not   contribute
significantly  to  consolidated operations  in  the  three  month
periods ended June 30, 2000 or 1999.

<TABLE>
<CAPTION>

                                       Three Months Ended June 30
                                          2000             1999
                                       ----------------------------
<S>                                    <C>             <C>
Average Net Finance Receivables(1)      $67,343,312     $50,413,662
Average Indebtedness(2)                  42,149,224      31,663,056
Total Interest Revenues                   3,909,514       2,835,182
Interest Expense                            835,023         623,509
                                       ----------------------------
Net Interest Income                       3,074,491       2,211,673
Gross Portfolio Yield(3)                     23.22%          22.50%
Average Cost of Borrowed Funds (2)            7.92%           7.88%
                                       ----------------------------
Net Interest Spread (4)                      15.30%          14.62%
Net Portfolio Yield (3)                      18.26%          17.55%
Write-off to Liquidation(5)                   5.68%           5.31%
Net Charge-Off Percentage(6)                  4.81%           4.49%

</TABLE>

(1) Average  net  finance receivables represents 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) Gross  portfolio  yield  represents  total  revenues   as   a
    percentage   of   average  net  finance   receivables.    Net
    portfolio   yield  represents  net  interest  income   as   a
    percentage of average net finance receivables.

(4) Net  interest  spread  represents the gross  portfolio  yield
    less the average cost of borrowed funds.

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

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

<PAGE> 11



Three  months ended June 30, 2000 compared to three months  ended
June 30, 1999


 Interest Income and Loan Portfolio

       Interest  revenue  increased  38%  to $3.9 million for the
period  ended  June 30, 2000, from $2.8 million  for  the  period
ended  June 30, 1999. The net finance receivable balance  totaled
$57.4 million at June 30, 2000, an increase of 37% from the $41.9
million  at  June 30, 1999. The gross finance receivable  balance
increased  37%  to  $92.0 million at June  30,  2000  from  $67.2
million  at  June  30, 1999. The primary reason interest  revenue
increased was the increase in the outstanding loan portfolio. The
gross  portfolio yield increased from 22.50% for the period ended
June  30, 1999 to 23.22% for the period ended June 30, 2000.  The
primary  reason  that net finance receivables increased  was  the
opening of three additional offices.

 Computer Software Business

       Sales  for  the  period  ended June 30, 2000 were $116,810
compared to $135,448  for  the  period  ended  June  30,  1999, a
decrease of 14%. This decrease was primarily due to lower revenue
from the existing customer base.

 Operating Expenses

       Operating expenses, excluding provision for credit  losses
and  interest expense, increased to $1.7 million for  the  period
ended  June 30, 2000 from $1.3 million for the period ended  June
30,  1999. This increase of 31% was primarily attributable to the
opening  of  three  additional branches,  increased  home  office
personnel and increased general operating expenses.

 Interest Expense

      Interest expense increased to $835,023 for the period ended
June  30, 2000 as compared to $623,509 for the period ended  June
30,  1999.  This  increase  was due to  an  increase  in  average
outstanding borrowings from $31.7 million to $42.1 million during
the  comparable  periods.  The average  cost  of  funds  borrowed
increased from 7.88% for the period ended June 30, 1999 to  7.92%
for the period ended June 30, 2000 .

<PAGE> 12


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 80 Contracts
with  an  aggregate  initial principal  amount  of  approximately
$630,771. As of June 30, 2000, the Company had 253 active pools.

   The  Company  pools  Contracts according  to  branch  location
because  the  branches  purchase contracts in  different  markets
located  in  Florida, Georgia and North Carolina.  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.

   A 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  is
used  to  reestablish  adequate reserves.  If  a  pool  is  fully
liquidated  and  has any remaining reserves, the excess  reserves
are accreted into income.

   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, 2000, the Company had
established  reserves for losses on Contracts of  $12,448,596  or
17.82% of net outstanding receivables.

<PAGE> 13


   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 EndedThree Months Ended
                                June 30, 2000      June 30, 1999
                             ------------------------------------
<S>                          <C>  <C>    <C>      <C> <C>      <C>
Contracts
Gross Balance Outstanding          $88,141,806         $64,799,801

                               Dollar                Dollar
Delinquencies                  Amount   Percent*     Amount   Percent*
                             ---------- --------   ---------- --------
30 to 59 days                $1,973,156   2.24%    $1,633,902   2.52%
60 to 89 days                   515,065   0.58%       431,504   0.67%
90   +  days                    110,227   0.13%       118,106   0.18%
                              ---------   -----     ---------   -----
Total Delinquencies          $2,598,448            $2,183,512

*Total Delinquencies as
 percent of outstanding balance           2.95%                 3.37%

Direct Loans
Gross Balance Outstanding          $ 3,898,563         $ 2,425,782

Delinquencies

30 to 59 days                   $28,812   0.74%        $8,273   0.34%
60 to 89 days                     5,405   0.14%         8,812   0.36%
90 + days                        10,671   0.27%           647   0.03%
                              ---------   -----     ---------   -----
Total Delinquencies             $44,888               $17,732

*Total Delinquencies as a
percent of outstanding balance            1.15%                 0.73%

</TABLE>

  The  provision  for credit losses was $371,710  for  the  three
month period ended June 30, 2000 as compared to $250,678 for  the
three month period ended June 30, 1999. The Company decreased its
total  reserve percentage from 14.08% for the period  ended  June
30, 1999 to 13.53% for the period ended June 30, 2000. Management
believes that the reserve adjustments made during the three month
period  ended  June  30,  2000 are consistent  with  its  reserve
methodology.

Income Taxes

  The Company's effective tax rate remained relatively consistent
at  38.54% for the three months ended June 30, 2000, as  compared
to 38.34% for the three months ended June 30, 1999.

<PAGE> 14

Liquidity and Capital Resources

The Company's cash flows for the three months ended June 30, 2000
and June 30, 1999 are summarized as follows:

<TABLE>
<CAPTION>
                                 Three  months ended  Three months ended
                                      June 30,2000       June 30,1999
                              ---------------------------------------------
<S>                                  <C>               <C>
  Cash provided by (used in):
  Operating Activities -              $ 1,112,446       $   1,217,254

  Investing Activities -
  (primarily purchase of Contracts)    (5,817,830)         (2,248,858)

  Financing Activities                  4,551,095             791,259

  Net decrease in cash                   (154,289)           (240,345)

</TABLE>

      The  Company's  primary use of working capital  during  the
three  months ended June 30, 2000 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,
2000  the Company had approximately $1.8 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.

      On July 6th  the  Company successfully increased its credit
facility. The  new  agreement increases the total facility to $60
million. The  increased  credit  facility expires on November 30,
2002.

      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.


Future Expansion

      The  Company currently operates nineteen branch  locations,
fourteen  in the State of Florida, three in the State of  Georgia
and  two  in the State of North Carolina. 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  two  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 believes that opportunity for growth continues  to
exist  in  the States of Florida, Georgia and North Carolina  and
for  the foreseeable future intends generally to concentrate  its
expansion  activities in these States. The Company has identified
Buford, Georgia and Greensboro, North Carolina as areas where  it
may open additional branch offices during fiscal 2001.

<PAGE> 15

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 II - Other Information


Item 1.   Legal Proceedings - None

Item 2.   Changes in Securities - None

Item 3.   Defaults upon Senior Securities - None

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

Item 5.   Other Information - None

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

          (b)  Reports on Form 8-K -  None

<PAGE> 16

                           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, 2000.


                    NICHOLAS FINANCIAL, INC.
                          (Registrant)


  Date: August 14, 2000         /s/ Peter L. Vosotas
                                ---------------------------
                                Peter L. Vosotas
                                Chairman, President, Chief
                                Executive Officer
                                (Principal Executive Officer)


  Date: August 14, 2000         /s/ Ralph T. Finkenbrink
                                ---------------------------
                                Ralph T. Finkenbrink
                                (Principal Financial Officer
                                 and Accounting Officer)

<PAGE> 17

                          EXHIBIT INDEX


Item 13. Exhibits and Reports on Form 8-K

       (a)  Exhibits


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

       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

<PAGE> 18

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

10.2.0 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

10.2.1 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

10.2.2 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

10.3.1 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

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

23     Powers of Attorney (included on signature page hereto)

27     Financial Data Schedule (for SEC use only)

          (b)  Reports on Form 8-K
                None