<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 DECEMBER 31, 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 January 31st, 2001 there were 2,318,608 shares of common
                        stock outstanding

             This Form 10-QSB consists of 19 pages.

<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 December 31, 2000..............................3

          Condensed Consolidated Statements of
           Income for  the  three and nine months
           ended December 31, 2000 and 1999.....................4

          Condensed Consolidated Statements of
           Cash Flows for the nine months ended
           December 31, 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....................................16

Item 2.   Changes in Securities and Use of Proceeds............16

Item 3.   Defaults upon Senior Securities......................16

Item 4.   Submission of Matters to a Vote of
           Security Holders....................................16

Item 5.   Other Information....................................16

Item 6.   Exhibits and Reports on Form 8-K.....................16

          Signatures...........................................17

          Exhibit Index........................................18


<PAGE> 3
<TABLE>
<CAPTION>
                     Nicholas Financial, Inc.
               Condensed Consolidated Balance Sheet
                            (Unaudited)

                                                    December 31
                                                        2000
                                                   --------------
<S>                                                 <C>
Assets
Cash                                                   $ 343,585
Finance receivables, net                              61,856,424
Accounts receivable                                       18,026
Prepaid expenses and other assets                        640,077
Property and equipment, net                              354,688
Deferred income taxes                                  1,190,888
                                                   --------------
Total assets                                        $ 64,403,688
                                                   ==============
Liabilities
Line of credit                                      $ 46,973,049
Notes payable - related party                          1,118,008
Accounts payable                                       2,274,738
Income taxes payable                                      60,104
Deferred revenues                                        611,926
Other liabilities                                         16,232
                                                   --------------
                                                      51,054,057

Shareholders' equity
Preferred stock, no par: 5,000,000 shares
 authorized;none issued and outstanding                        -
Common stock, no par: 50,000,000 shares
 authorized; 2,318,608 shares
 issued and outstanding                                3,584,661
Retained earnings                                      9,764,970
                                                   --------------
                                                      13,349,631
                                                   --------------
Total liabilities and shareholders' equity          $ 64,403,688
                                                   ==============

See accompanying notes.

</TABLE>

<PAGE> 4
<TABLE>
<CAPTION>
                        Nicholas Financial, Inc.
               Condensed Consolidated Statements of Income
                               (Unaudited)


                                     Three months ended         Nine months ended
                                         December 31                December 31
                                       2000        1999          2000         1999
                                   ---------------------------------------------------
<S>                                <C>        <C>            <C>          <C>
Revenue:
Interest income on
 finance receivables                $4,329,865  $3,486,518    $12,489,935  $9,453,993
Sales                                   90,744     133,050        306,611     398,498
                                   ---------------------------------------------------
                                     4,420,609   3,619,568     12,796,546   9,852,491
Expenses:
Cost of sales                           19,857      23,230         65,485      61,056
Marketing                              100,816      92,262        318,258     279,975
Administrative                       1,554,953   1,357,795      4,624,829   3,694,411
Provision for credit losses            390,312     312,571      1,067,101     787,900
Depreciation and amortization           40,500      22,500        106,500      68,640
Interest expense                     1,002,433     725,309      2,792,944   2,027,462
                                   ---------------------------------------------------
                                     3,108,871   2,533,667      8,975,117   6,919,444
Operating income                   ---------------------------------------------------
  before income taxes                1,311,738   1,085,901      3,821,429   2,933,047

Income tax expense (benefit):
 Current                               504,182     451,754      1,547,140   1,499,730
 Deferred                                          (34,280)       (75,000)   (375,074)
                                   ---------------------------------------------------
                                       504,182     417,474      1,472,140   1,124,656
                                   ---------------------------------------------------
Net Income                           $ 807,556   $ 668,427     $2,349,289  $1,808,391
                                   ===================================================
Earnings per share - basic               $0.35       $0.28          $1.00       $0.77
                                   ===================================================
Earnings per share - diluted             $0.32       $0.26          $0.93       $0.71
                                   ===================================================

See accompanying notes.

</TABLE>
<PAGE> 5

<TABLE>
<CAPTION>
                        Nicholas Financial, Inc.
             Condensed Consolidated Statements of Cash Flows
                               (Unaudited)


                                       Nine months ended December 31
                                            2000           1999
                                      -------------------------------
<S>                                   <C>             <C>
Operating activities
Net income                             $ 2,349,289     $ 1,808,391
Adjustments to reconcile
 net income to net cash provided
 by operating activities:
Depreciation                               106,500          68,640
Provision for credit losses              1,067,101         787,900
Deferred income taxes                      (75,000)       (209,280)
 Changes in operating assets
  and liabilities:
  Accounts receivable                        2,896          (1,633)
  Prepaid expenses and other assets       (247,393)       (139,831)
  Deferred revenues                         93,208          56,720
  Accounts payable                        (420,885)        242,318
  Other liabilities                              -          (4,696)
  Income taxes payable                      15,139         (99,662)
                                      -------------------------------
Net cash provided by operating
 activities                              2,890,855       2,508,867

Investing activities
Increase in finance receivables,
 net of principal collected            (10,908,418)    ( 7,942,521)
Purchase of property and
 equipment, net of disposals              (129,594)        (85,668)
Net cash used in investing            -------------------------------
 activities                            (11,038,012)     (8,028,189)

Financing activities
Repayment of notes payable
 - related party                          (200,000)         (3,741)
Net proceeds from line of credit         8,558,500       5,250,000
(Repurchase) sale of common stock         (126,941)          7,198
                                      -------------------------------
Net cash provided by financing
 activities                              8,231,559       5,253,457
                                      -------------------------------
Net increase (decrease) in cash             84,402        (265,865)
Cash, beginning of period                  259,183         509,418
                                      -------------------------------
Cash, end of period                       $343,585        $243,553
                                      ===============================

See accompanying notes.

</TABLE>
<PAGE> 6

                        Nicholas Financial, Inc.
        Notes to the Condensed Consolidated Financial Statements
                              (Unaudited)
                           December 31, 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 nine months ended  December
31,  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)
                            December 31, 2000


                                         Three months ended     Nine months ended
                                             December 31,          December 31,
                                          2000        1999       2000       1999
                                       ---------------------------------------------
<S>                                   <C>        <C>         <C>         <C>

Numerator:
 Numerator for basic earnings per
  share - Net income Available to
  common stockholders                  $807,556     668,427   $2,349,289  $1,808,391

 Effect of dilutive securities:
    Convertible debt                     15,283      24,909       46,391      74,727
 Numerator for dilutive earnings      ----------------------------------------------
  per share - income available to
  common stockholders after assumed
  conversions                          $822,839    $693,336   $2,395,680  $1,883,118
                                      ==============================================
   Denominator:
 Denominator for basic earnings per
  share - Weighted average shares     2,334,470   2,352,608    2,343,062   2,352,040

Effect of dilutive securities: (A)
  Employee stock options                 51,492      59,204       59,378      47,952
  Convertible debt                      177,806     264,798      179,639     264,798
                                       ---------------------------------------------
Dilutive potential common shares        229,298     324,002      239,017     312,750
                                       ---------------------------------------------
 Denominator for diluted earnings
  per share - Adjusted weighted-
  average sharesand assumed
  Conversions                         2,563,768   2,676,610    2,582,079   2,664,790
                                      ==============================================
 Earnings per share - basic               $0.35       $0.28        $1.00       $0.77
                                      ==============================================
 Earnings per share - diluted             $0.32       $0.26        $0.93       $0.71
                                      ==============================================

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                             105,500           -      58,833           -
    Warrants                            333,333           -     333,333           -

</TABLE>
<PAGE> 8

                        Nicholas Financial, Inc.
        Notes to the Condensed Consolidated Financial Statements
                               (Unaudited)
                            December 31, 2000


3. Finance Receivables

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


         Finance receivables,gross contract       $98,087,139
          Less:
            Unearned interest                     (23,063,967)
                                                  ------------
                                                   75,023,172
            Nonrefundable dealer reserves          (9,727,344)
            Allowance for credit losses            (3,439,404)
                                                  ------------
         Finance receivables, net                 $61,856,424
                                                  ============

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 $60 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%.


<PAGE> 9

                        Nicholas Financial, Inc.
        Notes to the Condensed Consolidated Financial Statements
                               (Unaudited)
                            December 31, 2000



5. Notes Payable - Related Party

Notes payable consisted of the following:


Notes payable, due through November 2001, 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.                             $500,000


Note  payable, unsecured, interest at 12%, quarterly
interest due through August 2001, at which time  the
entire principal balance is due.                            618,008
                                                         ----------
                                                         $1,118,008
                                                         ==========

<PAGE> 10
            MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
                   CONDITION AND RESULTS OF OPERATIONS
Introduction

   Consolidated net income increased for the three month period  ended
December 31, 2000 to $807,556 from $668,427 for the three month period
ended  December  31,  1999.  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 December 31, 2000 or 1999.

   Consolidated net income increased for the nine month  period  ended
December  31,  2000 to $2,349,289 from $1,808,391 for the  nine  month
period ended December 31, 1999. 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 nine month periods ended December 31, 2000 or 1999.

<TABLE>

                              Three Months Ended       Nine Months Ended
                                  December 31             December 31
                               2000         1999       2000          1999
                          ===================================================
<S>                       <C>          <C>          <C>          <C>
Average Net Finance
 Receivables (1)           $74,852,495  $56,318,153  $71,646,186  $53,101,652

Average Indebtedness(2)     47,689,890   35,480,572   45,502,779   33,369,289

Total Interest Revenues      4,329,865    3,486,518   12,489,935    9,453,993

Interest Expense             1,002,433      725,309    2,792,944    2,027,462
                           --------------------------------------------------
Net Interest Income          3,327,432    2,761,209    9,696,991    7,426,531

Gross Portfolio Yield(3)        23.14%       24.76%       23.24%       23.74%

Average Cost of
 Borrowed Funds(2)               8.41%        8.18%        8.18%        8.10%
                           --------------------------------------------------
Net Interest Spread (4)         14.73%       16.59%       15.06%       15.64%

Net Portfolio Yield (3)         17.78%       19.61%       18.05%       18.65%

Write-off to Liquidation(5)      9.02%        8.37%        7.68%        7.09%

Net Charge-Off Percentage(6)     7.75%        7.19%        6.50%        6.17%

(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.


</TABLE>
<PAGE> 11

Three  months  ended  December 31, 2000 compared to three  months  ended
December 31, 1999


 Interest Income and Loan Portfolio

       Interest  revenue increased 24% to $4.3 million for the  period
ended  December  31,  2000, from $3.5 million  for  the  period  ended
December  31,  1999. The net finance receivable balance totaled  $75.0
million at December 31, 2000, an increase of 31% from $57.3 million at
December 31, 1999. The gross finance receivable balance increased  31%
to  $98.1  million at December 31, 2000 from $75.0 million at December
31,  1999.  The  primary  reason interest revenue  increased  was  the
increase in the outstanding loan portfolio. The gross portfolio  yield
decreased from 24.76% for the period ended December 31, 1999 to 23.14%
for  the  period ended December 31, 2000. The primary reason that  net
finance  receivables  increased  was the  opening  of  one  additional
office.

 Computer Software Business

   Sales  for the period ended December 31, 2000 were $90,744 compared
to $133,050 for the period ended December 31, 1999, a decrease of 32%.
This  decrease  was  primarily due to a decrease in new  installations
during the period ended December 31, 2000.

 Operating Expenses

       Operating  expenses, excluding provision for credit losses  and
interest  expense,  increased to $1.7 million  for  the  period  ended
December 31, 2000 from $1.5 million for the period ended December  31,
1999.  This increase of 15% was primarily attributable to the  opening
of   one  additional  office,  increased  home  office  personnel  and
increased general operating expenses.

 Interest Expense

       Interest  expense increased to $1,002,433 for the period  ended
December  31,  2000  as  compared to $725,309  for  the  period  ended
December  31,  1999. This increase was due to an increase  in  average
outstanding borrowings from $35.5 million to $47.7 million during  the
comparable periods. The average cost of funds borrowed increased  from
8.18%  for the period ended December 31, 1999 to 8.41% for the  period
ended December 31, 2000.


Nine  months  ended  December 31, 2000 compared to nine  months  ended
December 31, 1999


Interest Income and Loan Portfolio

       Interest revenue increased 32% to $12.5 million for the  period
ended  December  31,  2000, from $9.5 million  for  the  period  ended
December  31,  1999. The net finance receivable balance totaled  $75.0
million at December 31, 2000, an increase of 31% from $57.3 million at
December 31, 1999. The gross finance receivable balance increased  31%
to  $98.1  million at December 31, 2000 from $75.0 million at December
31,  1999.  The  primary  reason interest revenue  increased  was  the
increase in the outstanding loan portfolio. The gross portfolio  yield
decreased from 23.74% for the period ended December 31, 1999 to 23.24%
for  the  period ended December 31, 2000. The primary reason that  net
finance  receivables  increased  was the  opening  of  two  additional
offices.

 Computer Software Business

   Sales for the period ended December 31, 2000 were $306,611 compared
to $398,498 for the period ended December 31, 1999, a decrease of 23%.
This  increase  was  primarily due to a decrease in new  installations
during the period ended December 31, 2000.

 Operating Expenses

       Operating  expenses, excluding provision for credit losses  and
interest  expense,  increased to $5.1 million  for  the  period  ended
December 31, 2000 from $4.1 million for the period ended December  31,
1999.  This increase of 25% was primarily attributable to the  opening
of  two  additional  branches, increased  home  office  personnel  and
increased general operating expenses.

 Interest Expense

       Interest expense increased to $2.8 million for the period ended
December  31,  2000 as compared to $2.0 million for the  period  ended
December  31,  1999. This increase was due to an increase  in  average
outstanding borrowings from $33.4 million to $45.5 million during  the
comparable periods. The average cost of borrowed funds increased  from
8.10%  for the nine months ending December 31, 1999 to 8.18%  for  the
nine months ending December 31, 2000.

<PAGE> 13

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  81 Contracts with an aggregate  initial  principal
amount of approximately $645,400. As of December 31, 2000, the Company
had 274 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 recognized as 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  December 31, 2000, the  Company  had  established
reserves  for  losses on Contracts of $13,166,748  or  17.55%  of  net
outstanding receivables.

   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:

<PAGE> 14
<TABLE>
<CAPTION>
                        Nine Months Ended      Nine Months Ended
                        December 31, 2000      December 31, 1999
                       -------------------     --------------------
<S>                   <C> <C>      <C>        <C>   <C>     <C>
Contracts
Gross Balance
 Outstanding               $93,829,707              $71,424,596

                       Dollar                   Dollar
Delinquencies          Amount     Percent*      Amount     Percent*
30 to 59 days         $2,578,104    2.75%      $1,681,726    2.35%
60 to 89 days          1,406,290    1.50%         375,087    0.53%
90 + days                470,497    0.50%         110,302    0.15%
                      ----------    -----      ----------    -----
Total Delinquencies   $4,454,891               $2,167,115

*Total Delinquencies
  as percent of
  outstanding balance               4.75%                    3.03%

Direct Loans
Gross Balance
 Outstanding                $4,257,432               $3,524,161

Delinquencies
30 to 59 days            $49,385    1.15%         $33,402    0.95%
60 to 89 days             19,040    0.45%           3,830    0.11%
90 + days                 18,963    0.45%           5,761    0.16%
                         -------    -----         -------    -----
Total Delinquencies      $87,388                  $42,993

*Total Delinquencies
 as a percent of
 outstanding balance                2.05%                    1.22%

</TABLE>


   The  provision for credit losses was $390,312 for the  three  month
period  ended  December 31, 2000 and $1,067,101  for  the  nine  month
period  ended December 31, 2000 as compared to $312,571 for the  three
month  period ended December 31, 1999 and $787,900 for the nine  month
period  ended  December  31,  1999. The Company  increased  its  total
reserve percentage from 13.25% for the period ended March 31, 2000  to
13.42%  for  the  period ended December 31, 2000. Management  believes
that  the  reserve adjustments made during the three  and  nine  month
periods  ended  December  31,  2000 are consistent  with  its  reserve
methodology.

Income Taxes

   The Company's effective tax rate remained relatively consistent  at
38.44%  and  38.52% for the three and nine months ended  December  31,
2000,  as compared to 38.44% and 38.34% for the three and nine  months
ended December 31, 1999, respectively.

<PAGE> 15

Liquidity and Capital Resources

The  Company's cash flows for the nine months ended December 31,  2000
and December 31, 1999 are summarized as follows:

                              Nine months ended    Nine months ended
                                December 31,          December 31,
                                   2000                   1999
                              -----------------------------------------
  Cash provided by (used in):
   Operating  Activities-         $2,890,855            $2,508,867
   Investing Activities -
    (primarily purchase of
     Contracts)                  (11,038,012)           (8,028,189)
   Financing Activities            8,231,559             5,253,457
                                 -----------            -----------
   Net increase(decrease)in cash      84,402              (265,865)


      The  Company's  primary use of working capital during  the  nine
months  ended  December 31, 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 December  31,  2000  the
Company  had  approximately $13 million available under  the  line  of
credit.  The  Company  is currently negotiating to  further  increase,
beyond the most recent increase, the size of its 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.


Future Expansion

      The Company currently operates twenty branch locations, fourteen
in  the State of Florida, four 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  three  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  Greensboro,
North Carolina as an area where it may open a branch office during the
remainder of fiscal 2001.

<PAGE> 16


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 and Use of Proceeds - 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> 17

                              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 February 12, 2001.


                       NICHOLAS FINANCIAL, INC.
                             (Registrant)


  Date: February 12, 2001       /s/ Peter L. Vosotas
                                ----------------------------
                                Peter L. Vosotas
                                Chairman, President,
                                Chief  Executive Officer
                                (Principal Executive Officer)


  Date: February 12, 2001       /s/ Ralph T. Finkenbrink
                                ----------------------------
                                Ralph T. Finkenbrink
                                (Principal Financial Officer
                                 and Accounting Officer)

<PAGE> 18

                             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> 19

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

24      Powers of Attorney (included on signature page hereto)

27      Financial Data Schedule (for SEC use only)

       (b)  Reports on Form 8-K
               None