<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) July 17, 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 July 11, 1997,  the registrant renegotiated it's current
credit line with Bank America Business Credit. The new agreement
expands the total credit facility to 30,000,000 million, reduces
the rate of interest by 50 basis points, increases the type of
contracts that qualify for funding and increases the advance rate
on contracts that do qualify.

     On July 17, 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 July 17, 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 July
17, 1997.

                                
                    NICHOLAS FINANCIAL, INC.
                          (Registrant)


  Date: July 17, 1997           /s/ Peter L. Vosotas
                                Peter L. Vosotas
                                Chairman, President, Chief 
                                Executive Officer
                                (Principal Executive Officer)


  Date: July 17, 1997           /s/ Ralph T. Finkenbrink
                                Ralph T. Finkenbrink
                                (Principal Financial Officer  and
                                Accounting Officer)


<PAGE> 4


Exhibit No. 99.1 Press Release dated July 17, 1997 issued by the registrant


                                                                 
                                           FOR IMMEDIATE RELEASE
Nicholas


Nicholas Financial, Inc.
Corporate Headquarters

2454 McMullen-Booth Rd.
Building C, Suite 501
Clearwater, FL 33759

           
                        Date:    July 17, 1997        Symbol: (VSE): NFC.U
                        Contact: Peter L. Vosotas             (OTC): NCFNF
                                 Chairman & President
                                 Nicholas Financial, Inc.
                                 Ph # - 813-726-0763
                                 fax # - 813-726-2140
                                 web site: www.nicfn.com


              RECORD FINANCIAL RESULTS FOR THE FIRST QUARTER

                   BANKAMERICA INCREASES CREDIT LINE

          ANNUAL MEETING WILL BE AUGUST 6, 1997 IN CLEARWATER, FL


Clearwater, Florida, -  Nicholas Financial, Inc., is  pleased  to
report  increased earnings for the first quarter ended  June  30,
1997.

First Quarter Results:
The Company has posted record earnings for the first quarter. Net
income  rose  from $206,456 to $216,546. Earnings per  share  was
$.03  cents  for both the three months ended June  30,  1996  and
1997,   respectively.  Revenue  rose  23%  from   $1,461,775   to
$1,801,289.

BankAmerica Increases Line of Credit:
On July 11th, the Company successfully renegotiated its revolving
credit  line with BankAmerica Business Credit, and in  doing  so,
extended  the contract term by three years, increased  the  total
credit  facility to $30,000,000 and reduced the rate of  interest
by 50 basis points.

Mr.  Vosotas  noted that, "Recently, several public companies  in
our  industry, non-prime auto finance, have been unable to obtain
bank credit lines, unable to renew their existing credit line  or
are  currently  in  default  on their  existing  line.  This  new
contract  with  BankAmerica  is  a  terrific  endorsement  and  a
compliment   to  the  excellent  performance  of   the   Nicholas
organization."

Annual Meeting August 6th  at 11am in Clearwater, Florida:
The  Company will hold its annual meeting this year on August  6,
1997  at  11:00 AM at the Countryside Country Club in Clearwater,
Florida. Lunch will be served at the conclusion of the meeting.

Globe  and  Mail  Magazine ranks Nicholas eighth fastest  growing
Canadian Company, by Profits in the last five (5) years:
In  the  July 1997 issue of the Globe and Mail Canadian  business
magazine,  Nicholas  Financial was listed as the  eighth  fastest
growing  company in the last five (5) years, from a list  of  the
top  1000  public  companies that they analyzed.  While  we  were
surprised to read this, we are very pleased.

                          ### over ###
                                
<PAGE> 5

                           UNAUDITED*
                 CONSOLIDATED SELECT  FINANCIALS
            FOR THE 1ST QUARTER ENDING JUNE 30, 1997

<TABLE>
<CAPTION>

                                   1997        1996        %

<S>                            <C>           <C>          <C>
OPERATIONS:

REVENUES                        $1,801,289    $1,461,775     23%

OPERATING EXPENSES              $1,445,238    $1,129,454     28%

OPERATING INCOME BEFORE TAXES     $356,051      $332,321      7%

NET INCOME                        $216,546      $206,456      5%

NET INCOME PER SHARE                  $.03          $.03       -


BALANCE SHEET:

TOTAL ASSETS                   $28,104,345   $21,024,244     34%

TOTAL LIABILITIES              $21,852,521   $17,532,209     25%


STOCKHOLDER'S EQUITY:           $6,251,824    $3,492,035     79%

</TABLE>


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.

                           ### end ###
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{"company-data": {"conformed-name": "NICHOLAS FINANCIAL INC", "cik": "0001000045", "assigned-sic": "6153", "irs-number": "87363354", "state-of-incorporation": "FL", "fiscal-year-end": "0331"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-26680", "film-number": "97641742"}, "business-address": {"street1": "2454 MCMILLEN BOOTH RD", "street2": "BLDG C", "city": "CLEARWATER", "state": "FL", "zip": "34619", "phone": "8137260763"}, "mail-address": {"street1": "2454 MCMULLEN BOOTH RD", "street2": "BLDG C SUITE 501B", "city": "CLEARWATER", "state": "FL", "zip": "34619"}}
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) July 17, 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 July 11, 1997,  the registrant renegotiated it's current
credit line with Bank America Business Credit. The new agreement
expands the total credit facility to 30,000,000 million, reduces
the rate of interest by 50 basis points, increases the type of
contracts that qualify for funding and increases the advance rate
on contracts that do qualify.

     On July 17, 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 July 17, 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 July
17, 1997.

                                
                    NICHOLAS FINANCIAL, INC.
                          (Registrant)

  Date: July 17, 1997           /s/ Peter L. Vosotas
                                Peter L. Vosotas
                                Chairman, President, Chief 
                                Executive Officer
                                (Principal Executive Officer)

  Date: July 17, 1997           /s/ Ralph T. Finkenbrink
                                Ralph T. Finkenbrink
                                (Principal Financial Officer  and
                                Accounting Officer)
4

Exhibit No. 99.1 Press Release dated July 17, 1997 issued by the registrant

                                                                 
                                           FOR IMMEDIATE RELEASE
Nicholas

Nicholas Financial, Inc.
Corporate Headquarters

2454 McMullen-Booth Rd.
Building C, Suite 501
Clearwater, FL 33759

           
                        Date:    July 17, 1997        Symbol: (VSE): NFC.U
                        Contact: Peter L. Vosotas             (OTC): NCFNF
                                 Chairman & President
                                 Nicholas Financial, Inc.
                                 Ph # - 813-726-0763
                                 fax # - 813-726-2140
                                 web site: www.nicfn.com

              RECORD FINANCIAL RESULTS FOR THE FIRST QUARTER

                   BANKAMERICA INCREASES CREDIT LINE

          ANNUAL MEETING WILL BE AUGUST 6, 1997 IN CLEARWATER, FL

Clearwater, Florida, -  Nicholas Financial, Inc., is  pleased  to
report  increased earnings for the first quarter ended  June  30,
1997.

First Quarter Results:
The Company has posted record earnings for the first quarter. Net
income  rose  from $206,456 to $216,546. Earnings per  share  was
$.03  cents  for both the three months ended June  30,  1996  and
1997,   respectively.  Revenue  rose  23%  from   $1,461,775   to
$1,801,289.

BankAmerica Increases Line of Credit:
On July 11th, the Company successfully renegotiated its revolving
credit  line with BankAmerica Business Credit, and in  doing  so,
extended  the contract term by three years, increased  the  total
credit  facility to $30,000,000 and reduced the rate of  interest
by 50 basis points.

Mr.  Vosotas  noted that, "Recently, several public companies  in
our  industry, non-prime auto finance, have been unable to obtain
bank credit lines, unable to renew their existing credit line  or
are  currently  in  default  on their  existing  line.  This  new
contract  with  BankAmerica  is  a  terrific  endorsement  and  a
compliment   to  the  excellent  performance  of   the   Nicholas
organization."

Annual Meeting August 6th  at 11am in Clearwater, Florida:
The  Company will hold its annual meeting this year on August  6,
1997  at  11:00 AM at the Countryside Country Club in Clearwater,
Florida. Lunch will be served at the conclusion of the meeting.

Globe  and  Mail  Magazine ranks Nicholas eighth fastest  growing
Canadian Company, by Profits in the last five (5) years:
In  the  July 1997 issue of the Globe and Mail Canadian  business
magazine,  Nicholas  Financial was listed as the  eighth  fastest
growing  company in the last five (5) years, from a list  of  the
top  1000  public  companies that they analyzed.  While  we  were
surprised to read this, we are very pleased.

                          ### over ###
5

                           UNAUDITED*
                 CONSOLIDATED SELECT  FINANCIALS
            FOR THE 1ST QUARTER ENDING JUNE 30, 1997
1997        1996        %
OPERATIONS:

REVENUES                        $1,801,289    $1,461,775     23%

OPERATING EXPENSES              $1,445,238    $1,129,454     28%

OPERATING INCOME BEFORE TAXES     $356,051      $332,321      7%

NET INCOME                        $216,546      $206,456      5%

NET INCOME PER SHARE                  $.03          $.03       -

BALANCE SHEET:

TOTAL ASSETS                   $28,104,345   $21,024,244     34%

TOTAL LIABILITIES              $21,852,521   $17,532,209     25%

STOCKHOLDER'S EQUITY:           $6,251,824    $3,492,035     79%
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.

                           ### end ###