<PAGE>  1
                                
         UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                       Washington, DC  20549
                                
                                
                             FORM 8-K
                                
                                
                                
                         CURRENT REPORT



             PURSUANT TO SECTION 13 OR 15(d) OF THE
                 SECURITIES EXCHANGE ACT OF 1934



   Date of Report (Date of earliest event reported) January 29,
                              1997
                                
                                
                                
                     NICHOLAS FINANCIAL, INC.
      (Exact name of registrant as specified in its Charter)




   British Columbia, Canada           333-08407         8736-3354
  (State or Other Jurisdiction of    (Commission    (I.R.S. Employer
   Incorporation or Organization)    File Number)    Identification No.)

  2454 McMullen Booth Road, Building C
         Clearwater, Florida                           34619
   (Address of Principal Executive Offices)         (Zip Code)



                          (813) 726-0763
       (Registrant's telephone number, Including area code)
                                
                                
                          Not applicable
  (Former name, former address and former fiscal year, if changed
                       since last report)

                                
<PAGE>  2

                                
                                
Item 5.   Other Events

     On January 28, 1997,  the registrant entered into an
agreement providing for the purchase of approximately $3,085,000
of automobile installment sales contracts from Sun Systems
Financial Corporation, based in Punta Gorda, Fl.

     On January 29, 1997,  the registrant issued a press release
announcing the transaction, a copy of which is attached as
exhibit 99.1 to this Form 8-K and incorporated herein by
reference.



Item 7.                        Financial Statements and Exhibits

 (c)                           Exhibits

    Exhibit No.                Description of Document

    99.1     Press release dated January 29, 1997 issued   
             by the registrant

<PAGE>  3

                           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
8-K  and authorized this Report to be signed on its behalf by the
undersigned,  in  the City of Clearwater, State  of  Florida,  on
February 11, 1997.

                                
                    NICHOLAS FINANCIAL, INC.
                          (Registrant)


Date: Fenruary 11, 1997       /s/ Peter L. Vosotas
                                  Peter L. Vosotas
                                  Chairman,   President,
                                  Chief Executive Officer
                                  (Principal Executive Officer)


Date: February 11, 1997       /s/ Ralph T. Finkenbrink
                                  Ralph T. Finkenbrink
                                  (Principal  Financial Officer
                                   and Accounting Officer)
<PAGE>  4

Exhibit No.  99.1   Press release dated January 29, 1997 issued
by the registrant


Nicholas Financial, Inc.

                                                     NEWS RELEASE

2454 McMULLEN BOOTH ROAD
BUILDING C, SUITE 501B
CLEARWATER, FLORIDA  34619

                                            Contact: Sandra Krause
                                            Ph # - (813) 726-0763
                                            Fax# - (813) 726-2140
                                            E-Mail-skrause@nicfn.com
                                            Web Site-www.nicfn.com




       NICHOLAS CONCLUDES ACQUISITION OF $3,085,000 WORTH
           OF INSTALLMENT SALES AUTOMOBILE CONTRACTS
    FROM SUN SYSTEMS FINANCIAL CORPORATION., PUNTA GORDA, FL



      JANUARY 29, 1997 - Clearwater, Florida, Nicholas Financial,
Inc.  announced  today  that  it has successfully  completed  the
acquisition of approximately $3,085,000 of automobile installment
sales contracts from Sun Systems Financial Corporation, based  in
Punta Gorda, Florida.

      According to Ralph Finkenbrink, Vice President of  Finance,
"This transaction will not materially affect the company's fourth
fiscal  quarter financial results, but we believe  that  it  will
have a positive effect on earnings over the next two years."

      Nicholas  Financial, Inc. is a specialized finance  company
that provides funding for pre-owned automobiles and light trucks.
The  company  acquires  and  services  retail  installment  sales
contracts through a network of branch office locations in Florida
and  Georgia. The company also provides small consumer loans. Its
software  subsidiary,  Nicholas  Data  Services,  Inc.,  designs,
develops,   supports  and  sells  computer  software   to   small
businesses.

      The  company's stock is publicly traded and listed  on  the
Vancouver Stock Exchange under the symbol "NFC.U" and on the  OTC
Bulletin Board under the symbol "NCFNF".
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1
                                
         UNITED STATES SECURITIES AND EXCHANGE COMMISSION
                       Washington, DC  20549
                                
                                
                             FORM 8-K
                                
                                
                                
                         CURRENT REPORT

             PURSUANT TO SECTION 13 OR 15(d) OF THE
                 SECURITIES EXCHANGE ACT OF 1934

   Date of Report (Date of earliest event reported) January 29,
                              1997
                                
                                
                                
                     NICHOLAS FINANCIAL, INC.
      (Exact name of registrant as specified in its Charter)

   British Columbia, Canada           333-08407         8736-3354
  (State or Other Jurisdiction of    (Commission    (I.R.S. Employer
   Incorporation or Organization)    File Number)    Identification No.)

  2454 McMullen Booth Road, Building C
         Clearwater, Florida                           34619
   (Address of Principal Executive Offices)         (Zip Code)

                          (813) 726-0763
       (Registrant's telephone number, Including area code)
                                
                                
                          Not applicable
  (Former name, former address and former fiscal year, if changed
                       since last report)
2

                                
                                
Item 5.   Other Events

     On January 28, 1997,  the registrant entered into an
agreement providing for the purchase of approximately $3,085,000
of automobile installment sales contracts from Sun Systems
Financial Corporation, based in Punta Gorda, Fl.

     On January 29, 1997,  the registrant issued a press release
announcing the transaction, a copy of which is attached as
exhibit 99.1 to this Form 8-K and incorporated herein by
reference.

Item 7.                        Financial Statements and Exhibits

 (c)                           Exhibits

    Exhibit No.                Description of Document

    99.1     Press release dated January 29, 1997 issued   
             by the registrant
3

                           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
8-K  and authorized this Report to be signed on its behalf by the
undersigned,  in  the City of Clearwater, State  of  Florida,  on
February 11, 1997.

                                
                    NICHOLAS FINANCIAL, INC.
                          (Registrant)

Date: Fenruary 11, 1997       /s/ Peter L. Vosotas
                                  Peter L. Vosotas
                                  Chairman,   President,
                                  Chief Executive Officer
                                  (Principal Executive Officer)

Date: February 11, 1997       /s/ Ralph T. Finkenbrink
                                  Ralph T. Finkenbrink
                                  (Principal  Financial Officer
                                   and Accounting Officer)
4

Exhibit No.  99.1   Press release dated January 29, 1997 issued
by the registrant

Nicholas Financial, Inc.

                                                     NEWS RELEASE

2454 McMULLEN BOOTH ROAD
BUILDING C, SUITE 501B
CLEARWATER, FLORIDA  34619

                                            Contact: Sandra Krause
                                            Ph # - (813) 726-0763
                                            Fax# - (813) 726-2140
                                            E-Mail-skrause@nicfn.com
                                            Web Site-www.nicfn.com

       NICHOLAS CONCLUDES ACQUISITION OF $3,085,000 WORTH
           OF INSTALLMENT SALES AUTOMOBILE CONTRACTS
    FROM SUN SYSTEMS FINANCIAL CORPORATION., PUNTA GORDA, FL

      JANUARY 29, 1997 - Clearwater, Florida, Nicholas Financial,
Inc.  announced  today  that  it has successfully  completed  the
acquisition of approximately $3,085,000 of automobile installment
sales contracts from Sun Systems Financial Corporation, based  in
Punta Gorda, Florida.

      According to Ralph Finkenbrink, Vice President of  Finance,
"This transaction will not materially affect the company's fourth
fiscal  quarter financial results, but we believe  that  it  will
have a positive effect on earnings over the next two years."

      Nicholas  Financial, Inc. is a specialized finance  company
that provides funding for pre-owned automobiles and light trucks.
The  company  acquires  and  services  retail  installment  sales
contracts through a network of branch office locations in Florida
and  Georgia. The company also provides small consumer loans. Its
software  subsidiary,  Nicholas  Data  Services,  Inc.,  designs,
develops,   supports  and  sells  computer  software   to   small
businesses.

      The  company's stock is publicly traded and listed  on  the
Vancouver Stock Exchange under the symbol "NFC.U" and on the  OTC
Bulletin Board under the symbol "NCFNF".