<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 SEPTEMBER 30, 1999



    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 October 31st, 1999 there were 2,351,608 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 September 30,1999..............................3

          Condensed Consolidated Statements of Income
           for the three and six months ended
           September 30, 1999 and 1998..........................4

          Condensed Consolidated Statements of Cash Flows
           for the six months ended September 30, 1999
           and 1998.............................................5

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

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

Part II. Other Information

 Item 1.  Legal Proceedings....................................17

 Item 2.  Changes in Securities................................17

 Item 3.  Defaults upon Senior Securities......................17

 Item 4.  Submission of Matters to a Vote of Security Holders..17

 Item 5.  Other Information....................................17

 Item 6.  Exhibits and Reports on Form 8-K.....................17

          Signatures...........................................18

          Index of Exhibits....................................19


<PAGE> 3

<TABLE>
<HEADER>
                     Nicholas Financial, Inc.
               Condensed Consolidated Balance Sheet
                            (Unaudited)

                                                   September 30
                                                       1999
                                                   -------------
<S>                                                <C>
Assets
Cash                                                $    141,178
Finance receivables, net                              43,567,292
Accounts receivable                                       17,797
Prepaid expenses and other assets                        459,354
Property and equipment, net                              207,063
Deferred income taxes                                  1,450,056
                                                   -------------
Total assets                                         $45,842,740
                                                   =============
Liabilities
Line of credit                                       $31,814,549
Notes payable - related party                          1,603,024
Accounts payable                                       2,305,754
Income taxes payable                                       4,770
Deferred revenues                                        405,014
Other liabilities                                         18,803
                                                   -------------
                                                      36,151,914

Shareholders' equity

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

Common stock, no par: 50,000,000 shares
authorized; 2,351,608 shares issued and
outstanding                                            3,712,748

Retained earnings                                      5,978,078
                                                   -------------
                                                       9,690,826
                                                   -------------
Total liabilities and shareholders' equity           $45,842,740
                                                   =============
See accompanying notes.

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


                                Three months ended      Six months ended
                                  September 30            September 30
                                 1999        1998       1999         1998
                               ---------------------------------------------
<S>                          <C>         <C>         <C>        <C>
Revenue:
Interest income on
 finance receivables          $3,132,293  $2,382,605  $5,967,474  $4,460,692
Sales                            130,000     107,536     265,448     217,329
                              ----------------------------------------------
                               3,262,293   2,490,141   6,232,922   4,678,021
Expenses:
Cost of sales                     22,295      22,976      37,826      45,677
Marketing                         95,920      90,036     187,713     163,528
Administrative                 1,186,054     951,463    2,336,615  1,806,692
Provision for credit losses      224,651     175,812      475,329    360,269
Depreciation and amortization     22,000      28,951       46,140     54,402
Interest expense                 678,644     635,580    1,302,153  1,238,643
                              ----------------------------------------------
                               2,229,564   1,904,818    4,385,776  3,669,211
                              ----------------------------------------------
Operating income before
  income taxes                 1,032,729     585,323    1,847,146  1,008,810

Income tax expense (benefit):
Current                          435,632     375,959      882,182    579,222
Deferred                         (40,720)   (150,000)    (175,000)  (190,000)
                              ----------------------------------------------
                                 394,912     225,959      707,182    389,222
                              ----------------------------------------------
Net Income                      $637,817    $359,364   $1,139,964   $619,588
                              ==============================================
Earnings per share - basic         $0.27       $0.15        $0.48      $0.26
                              ==============================================
Earnings per share - diluted       $0.25       $0.15        $0.45      $0.26
                              ==============================================

See accompanying notes.

</TABLE>
<PAGE> 5
<TABLE>
<HEADER>
                     Nicholas Financial, Inc.
          Condensed Consolidated Statements of Cash Flows
                            (Unaudited)


                                         Six months ended September 30
                                              1999              1998
                                        --------------------------------
<S>                                     <C>               <C>
Operating activities
Net income                               $  1,139,964      $    619,588
Adjustments to reconcile net
 income to net cash provided by
 operating activities:
Depreciation of property and equipment         46,140            54,402
Provision for credit losses                   475,329           360,269
Deferred income taxes                        (175,000)         (190,000)
Changes in operating assets and
 liabilities:
Accounts receivable                             5,135             6,672
Prepaid expenses and other assets            (150,510)         (153,928)
Deferred revenues                              17,070            92,982
Accounts payable                              570,398          (294,292)
Other liabilities                              (2,896)              412
Income taxes payable                            4,770           (72,919)
                                        --------------------------------
Net cash provided by operating
 activities                                 1,930,400           423,186

Investing activities
Increase in finance receivables,
  net of principal collected               (4,119,150)       (3,378,606)
Purchase of property and equipment            (35,910)          (59,818)
                                        --------------------------------
Net cash used by investing activities      (4,155,060)       (3,438,424)

Financing activities
Proceeds (repayment) of  notes payable
  - related party                              (3,741)           41,000
Net proceeds from line of credit            1,850,000         2,833,955
Sale of common stock                           10,161                 -
                                        --------------------------------
Net cash provided by financing activities   1,856,420         2,874,955
                                        --------------------------------
Net decrease in cash                         (368,240)         (140,283)

Cash, beginning of period                     509,418           303,960
                                        --------------------------------
Cash, end of period                          $141,178          $163,677
                                        ================================
See accompanying notes.

</TABLE>
<PAGE> 6

                     Nicholas Financial, Inc.
     Notes to the Condensed Consolidated Financial Statements
                           (Unaudited)
                       September 30, 1999


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 six months
ended  September  30,  1999  are not necessarily  indicative  of  the
results  that may be expected for the year ended March 31, 2000.  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, 1999.

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>
<HEADER>

                     Nicholas Financial, Inc.
     Notes to the Condensed Consolidated Financial Statements
                            (Unaudited)
                        September 30, 1999





                                      Three months ended    Six months ended
                                         September 30,        September 30,
                                       1999        1998     1999        1998
                                     ------------------------------------------
<S>                                   <C>        <C>       <C>        <C>
Numerator:

Numerator for basic earnings per
 share - Net income  available to
 common stockholders                   $637,817   $359,364  $1,139,964  $619,588

 Effect of dilutive securities:
  Convertible debt                       24,909     24,909      49,818    49,818
                                     -------------------------------------------
 Numerator for dilutive earnings
  per share - income available to
  common stockholders after assumed
  conversions                          $662,726   $384,273  $1,189,782  $669,406
                                     ===========================================
Denominator:
 Denominator for basic earnings per
  share - weighted average shares     2,351,756  2,357,013   2,351,682 2,357,013

 Effect of dilutive securities: (A)
   Employee stock options                52,721          -      42,299         -
   Convertible debt                     264,798    264,798     264,798   264,798
                                     -------------------------------------------
 Dilutive potential common shares       317,519    264,798     307,097   264,798

 Denominator for diluted earnings
  per share - adjusted weighted-
  average shares and assumed
  conversions                         2,669,275  2,621,811   2,658,779 2,621,811
                                     ===========================================
Earnings per share - basic                $0.27      $0.15       $0.48     $0.26
                                     ===========================================
Earnings per share - diluted              $0.25      $0.15       $0.45     $0.26
                                     ===========================================

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                                   -    230,700           -   230,700
    Warrants                            333,333    333,333     333,333   333,333

</TABLE>
<PAGE> 8

                     Nicholas Financial, Inc.
     Notes to the Condensed Consolidated Financial Statements
                            (Unaudited)
                        September 30, 1999




3. Finance Receivables

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


<TABLE>

   <S>                                   <C>
    Finance receivables, gross contract   $69,790,065
    Less:
       Unearned interest                  (16,416,153)
                                          -----------
                                           53,373,912
       Nonrefundable dealer reserves       (7,509,261)
       Allowance for credit losses         (2,297,359)
                                          -----------
       Finance receivables, net           $43,567,292
                                          ===========

</TABLE>

The terms  of  the  receivables  range from 6 to 60 months and bear a
weighted average effective interest rate of 24%.


4. Line of Credit

The  Company  has  a $35,000,000 line of credit facility  (the  Line)
which  expires  on  June 30, 2001. 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
$10,000,000  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 November 1, 1999 the  Company  successfully renegotiated its
credit facility. The new agreement increases  the  total  facility to
$45 million, reduces  the  effective  interest  rate  charged  to the
Company and extends the maturity date to November 1, 2002.

<PAGE> 9

                     Nicholas Financial, Inc.
     Notes to the Condensed Consolidated Financial Statements
                            (Unaudited)
                        September 30, 1999



<TABLE>
<HEADER>

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.                                             $1,150,000

Notes  payable, unsecured  interest  at 12%, quarterly
interest  due  through  April  2000, at which time the
entire  principal balance  and unpaid interest is due,
subordinated  to the  Line. The note is convertible at
the option of the holder, into common  shares at $8.25
per share.                                                      200,000

Note payable,  unsecured,  interest  at 12%, principal
and interest due through March 2000.                            245,470

Note  payable,  unsecured,  interest at 12%, quarterly
interest due through August 2000,  at  which time  the
entire principal balance is due.                                  7,554
                                                           -------------
                                                             $1,603,024
                                                           =============
</TABLE>
<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
September  30,  1999 to $637,817 from $359,364 for  the  three  month
period ended September 30, 1998. 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 September
30, 1999 or 1998.

   Consolidated net income increased for the six month  period  ended
September  30,  1999 to $1,139,964 from $619,588 for  the  six  month
period ended September 30, 1998. 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 six month periods ended  September
30, 1999 or 1998.

<TABLE>
<HEADER>
                           Three Months Ended          Six Months Ended
                              September 30               September 30
                            1999          1998         1999         1998
                         ---------------------------------------------------
<S>                     <C>           <C>          <C>          <C>
Average Net Finance
Receivables (1)          $52,573,141  $42,353,786  $51,493,401  $41,568,105
Average Indebtedness(2)   32,964,239   27,299,143   32,313,647   26,660,699
Total Interest Revenues    3,132,293    2,382,605    5,967,474    4,460,692
Interest Expense             678,644      635,580    1,302,153    1,238,643
                         ---------------------------------------------------
Net Interest Income        2,453,649    1,747,025    4,665,321    3,222,049
Gross Portfolio Yield(3)      23.83%       22.50%       23.18%       21.46%
Average Cost of
Borrowed Funds (2)             8.23%        9.31%        8.06%        9.29%
                         ---------------------------------------------------
Net Interest Spread (4)       15.60%       13.19%       15.12%       12.17%
Net Portfolio Yield (3)       18.67%       16.50%       18.12%       15.50%
Write-off to Liquidation(5)    7.39%        6.91%        6.41%        6.97%
Net Charge-Off Percentage(6)   6.68%        5.78%        5.61%        5.87%

</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 September 30, 1999 compared to three months  ended
September 30, 1998


 Interest Income and Loan Portfolio

       Interest revenue increased 31% to $3.1 million for the  period
ended  September  30, 1999, from $2.4 million for  the  period  ended
September 30, 1998. The net finance receivable balance totaled  $43.6
million  at  September 30, 1999, an increase of 23%  from  the  $35.4
million  at September 30, 1998. The gross finance receivable  balance
increased  24%  to  $69.8 million at September 30,  1999  from  $56.1
million  at  September 30, 1998. 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
September 30, 1998 to 23.83% for the period ended September 30, 1999.
The  primary  reason that net finance receivables increased  was  the
opening of two additional offices.

 Computer Software Business

       Sales for the  period ended September 30, 1999  were  $130,000
compared  to  $107,536 for the period ended September  30,  1998,  an
increase of 21%. This increase was primarily due to a increase in new
installations during the period ended September 30, 1999.

 Operating Expenses

       Operating expenses, excluding provision for credit losses  and
interest  expense,  increased  to $1,326,269  for  the  period  ended
September 30, 1999 from $1,093,426 for the period ended September 30,
1998.  This increase of 21% was primarily attributable to the opening
of  two  additional  branches, increased home  office  personnal  and
increased general operating expenses.

 Interest Expense

       Interest  expense increased to $678,644 for the  period  ended
September  30,  1999  as compared to $635,580 for  the  period  ended
September  30, 1998. This increase was due to an increase in  average
outstanding borrowings from $27.3 million to $33.0 million during the
comparable periods. The impact of this increase was offset,  in  part
by  a  decrease in the average cost of funds borrowed from 9.31%  for
the  period  ended September 30, 1998 to 8.23% for the  period  ended
September 30, 1999 .


<PAGE> 12

Six  months  ended  September 30, 1999 compared to six  months  ended
September 30, 1998


  Interest Income and Loan Portfolio

       Interest revenue increased 34% to $6.0 million for the  period
ended  September  30, 1999, from $4.5 million for  the  period  ended
September 30, 1998. The net finance receivable balance totaled  $43.6
million  at  September 30, 1999, an increase of 23%  from  the  $35.4
million  at September 30, 1998. The gross finance receivable  balance
increased  24%  to  $69.8 million at September 30,  1999  from  $56.1
million  at  September 30, 1998. The primary reason interest  revenue
increased  was  the increase in the outstanding loan  portfolio.  The
gross  portfolio  yield increased from 21.46% for  the  period  ended
September 30, 1998 to 23.18% for the period ended September 30, 1999.
The  primary  reason that net finance receivables increased  was  the
opening of two additional offices.

 Computer Software Business

   Sales  for  the  period  ended September 30,  1999  were  $265,448
compared  to  $217,329  for the period ended September  30,  1998,  a
increase of 22%. This increase was primarily due to a increase in new
installations during the period ended September 30, 1999.

 Operating Expenses

       Operating expenses, excluding provision for credit losses  and
interest  expense,  increased  to $2,608,294  for  the  period  ended
September 30, 1999 from $2,070,299 for the period ended September 30,
1998. This increase of 26%  was primarily attributable to the opening
of  two  additional  branches, increased home  office  personnal  and
increased general operating expenses.

 Interest Expense

       Interest expense increased to $1,302,153 for the period  ended
September  30,  1999 as compared to $1,238,643 for the  period  ended
September  30, 1998. This increase was due to an increase in  average
outstanding borrowings from $26.7 million to $32.3 million during the
comparable periods. The impact of this increase was offset,  in  part
by  a decrease in  the average cost of funds borrowed from 9.29%  for
the  period  ended September 30, 1998 to 8.06% for the  period  ended
September 30, 1999 .

<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  68 Contracts with an aggregate initial  principal
amount  of  approximately  $542,000. As of September  30,  1999,  the
Company had 218 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 September 30, 1999, the Company  had  established
reserves  for  losses on Contracts of $9,599,376  or  17.99%  of  net
outstanding receivables.

<PAGE> 14

   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>
<HEADER>

                         Six Months Ended        Six Months Ended
                        September 30, 1999      September 30, 1998
                       --------------------------------------------
<S>                       <C>  <C>  <C>         <C>  <C>  <C>
Contracts
Gross Balance Outstanding       $66,884,736           $54,773,697

                          Dollar                 Dollar
Delinquencies             Amount     Percent*    Amount     Percent*
                          ------     --------    ------     --------
30 to 59 days          $1,913,208      2.86%    $2,015,260    3.68%
60 to 89 days             413,991      0.62%       480,941    0.88%
90   +   days              91,354      0.14%       346,103    0.63%
                        ---------      -----     ---------    -----
Total Delinquencies    $2,418,553               $2,842,304

*Total Delinquencies
 as percent of
 outstanding balance                   3.62%                  5.19%

Direct Loans
Gross Balance Outstanding        $2,905,329            $1,385,580

Delinquencies
30 to 59 days             $26,579      0.92%        $6,691    0.48%
60 to 89 days               4,445      0.15%         3,358    0.24%
90 + days                   4,402      0.15%         2,175    0.16%
                          -------      -----        ------    -----
Total Delinquencies       $35,426                  $12,224

*Total Delinquencies
 as a percent of
 outstanding balance                   1.22%                  0.88%


</TABLE>

The  provision  for credit losses was $224,651 for  the  three  month
period ended September 30, 1999 and $475,329 for the six month period
ended  September 30, 1999 as compared to $175,812 for the three month
period ended September 30, 1998 and $360,269 for the six month period
ended  September  30, 1998. The Company increased its  total  reserve
percentage from 13.48% for the period ended March 31, 1999 to  14.05%
for the period ended September 30, 1999. Management believes that the
reserve adjustments made during the three and six month periods ended
September  30,  1999  are  consistent with its  conservative  reserve
methodology.

Income Taxes

   The Company's effective tax rate remained relatively consistent at
38.24%  and  38.29% for the three and six months ended September  30,
1999,  as compared to 38.60% and 38.58% for the three and six  months
ended September 30, 1998, respectively.


<PAGE> 15

Liquidity and Capital Resources

The  Company's cash flows for the six months ended September 30, 1999
and September 30, 1998 are summarized as follows:

<TABLE>
<HEADER>
                                  Six months ended    Six months ended
                                    September 30,        September 30,
                                        1999                 1998
                                ----------------------------------------
  <S>                               <C>                 <C>
  Cash provided by (used in):
        Operating  Activities -      $1,930,400          $  423,186
        Investing Activities -
        (primarily purchase of
         Contracts)                  (4,155,060)         (3,438,424)

        Financing Activities -        1,856,420           2,874,955

  Net (decrease) in cash               (368,240)           (140,283)

</TABLE>

      The  Company's  primary use of working capital during  the  six
months  ended September 30, 1999 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 September 30,  1999  the
Company  had approximately $3.2 million available under the  line  of
credit. The Company is currently negotiating to 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.

      On November 1, 1999 the  Company  successfully renegotiated its
credit facility. The new agreement increases  the  total  facility to
$45 million, reduces  the  effective  interest  rate  charged  to the
Company and extends the maturity date to November 1, 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 or both.


Future Expansion

      The Company currently operates sixteen branch locations, twelve
in the State of Florida, three in the State of Georgia and one 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  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 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  Atlanta,
Georgia,  Raleigh,  North Carolina and West Palm  Beach,  Florida  as
areas where it may open additional branch offices during fiscal 2000.


<PAGE> 16

Impact of Year 2000

      The  year  2000 Issue is the result of computer programs  being
written  using  two digits rather than four to define the  applicable
year.  Any  of the Company's computer programs or hardware that  have
date-sensitive software or embedded chips may recognize a date  using
"00" as the year 1900 rather than the year 2000. This could result in
a   system   failure  or  miscalculations  causing   disruptions   of
operations,  including, among other things, a temporary inability  to
process  transactions, send invoices, or engage in  similar  business
activities.

      The Company's plan to resolve the Year 2000 Issue involves  the
following   four  phases:  assessment,  remediation,   testing,   and
implementation.  To  date,  the  Company  has  fully  completed   its
assessment,  remediation, testing and implementation of  all  systems
that could be significantly affected by the Year 2000.

      The  Company has queried its significant suppliers and  vendors
that do not share information systems with the Company. To date,  the
Company  is  not aware of any external agent with a Year  2000  issue
that  would  materially impact the Company's results  of  operations,
liquidity, or capital resources. However, the Company has no means of
ensuring  that external agents will be Year 2000 ready. The inability
of  external agents to complete their Year 2000 resolution process in
a  timely fashion could materially impact the Company. The effect  of
non-compliance by external agents is not determinable.

      To date, the Company has incurred approximately $25,000 related
to  all  phases of the Year 2000 project. The total costs  have  been
expense as incurred.

      The Company currently has no contingency plan in place. In  the
event  that such a contingency plan is determined to be required  the
Company will evaluate and implement a contingency plan.

<PAGE> 17

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> 18
                           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 November 12, 1999.


                    NICHOLAS FINANCIAL, INC.
                          (Registrant)


  Date: November 12, 1999         /s/ Peter L. Vosotas
                                  ----------------------------
                                  Peter L. Vosotas
                                  Chairman, President,
                                  Chief Executive Officer
                                 (Principal  Executive Officer)


  Date: November 12, 1999         /s/ Ralph T. Finkenbrink
                                  -----------------------------
                                  Ralph T. Finkenbrink
                                 (Principal Financial Officer
     					    and Accounting Officer)

<PAGE> 19

                          EXHIBIT INDEX

    Exhibit    Document
   --------    ---------

     none