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 1, 2004


                   NICHOLAS FINANCIAL, INC.
    (Exact name of registrant as specified in its Charter)


    British Columbia, Canada      0-26680          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                           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)


<PAGE> 2



Item 5.     Other Events

     Nicholas Financial, Inc. announced effective today, the
Company  has  executed an amendment to its  Line  of  Credit
Agreement.  This amendment increases the revolving  Line  of
Credit  to $85 million; it extends the maturity date of  the
Line  until November 30, 2006, and includes the addition  of
the Bank of Scotland as its third participating bank.



Exhibit #      Description

 99   Press  release  dated  July 1,  2004,  announcing  the
        amendment to its Line of Credit Agreement.



<PAGE> 3


                         SIGNATURES

   Pursuant  to the requirements of the Securities  Exchange
Act  of 1934, the Registrant has duly caused this Report  to
be  signed  on its behalf by the undersigned, hereunto  duly
authorized.


                  NICHOLAS FINANCIAL, INC.
                        (Registrant)


  Date: July 1, 2004            /s/ Peter L. Vosotas
                                Peter L. Vosotas
                                Chairman, President,
                                Chief Executive Officer
                                (Principal Executive Officer)


    Date: July 1, 2004         /s/ Ralph T. Finkenbrink
                               Ralph T. Finkenbrink
                               (Principal Financial
                                Officer and Accounting
                                Officer)

<PAGE> 4

Exhibit Index

Exhibit     Description

99          Press release dated July 1, 2004, announcing the
            amendment to its Line of Credit Agreement.


<PAGE> 5

                    Exhibit 99



              FOR IMMEDIATE RELEASE


Nicholas

Nicholas Financial, Inc.
Corporate Headquarters

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



Contact: Ralph Finkenbrink
         Sr. Vice President, Finance

NASDAQ: NICK
Web site: www.nicholasfinancial.com
Ph # - 727-726-0763
Fax # - 727-726-2140


           Nicholas Financial Announces Revolving
           Line of Credit Increase to $85,000,000
              Bank of Scotland joins Consortium


July  1,  2004  - Clearwater, Florida - Nicholas  Financial,
Inc.  (Nasdaq,  NICK), announced effective today,  that  the
Company  has executed an amendment to its revolving line  of
credit  agreement.  This amendment increases  the  revolving
line  of credit to $85 million and extends the maturity date
of  the  line  until November 30, 2006.  The  new  agreement
includes  the  addition  of Bank of Scotland  as  its  third
participating bank.  Bank of Scotland, whose parent HBOS plc
is the 6th largest bank in Europe, has agreed to become part
of  the  consortium  of  lenders to the  Company.   Bank  of
America has been the Company's lead lender since 1993.   The
participating  lenders  are First Tennessee  Bank,  Hibernia
National Bank and now Bank of Scotland.

According  to  Peter  Vosotas, Chief Executive  Officer  and
President,  "The Company is pleased to add Bank of  Scotland
to its lending consortium as it gives the Company additional
leverage with its lenders.  It allows the Company to  extend
and  expand  its revolving line of credit without  straining
the  lending limits with any of these banks.  Extending  the
line of credit at this time gives the company the money that
it  needs  to  continue its controlled growth for  the  next
three (3) years."

Founded in 1985, with assets of $103,223,000 as of March 31,
2004,  Nicholas  Financial is one of  the  largest  publicly
traded  specialty consumer finance companies  based  in  the
Southeast.  The Company presently operates out of 32  branch
locations in both the Southeast and the Midwest States.  The
Company  has approximately 6,500,000 shares of common  stock
outstanding. For an index of Nicholas Financial Inc.'s  news
releases or to obtain a specific release, visit our web site
at www.nicholasfinancial.com.


Except for the historical information contained herein,  the
matters  discussed  in  this news release  include  forward-
looking  statements  that  involve risks  and  uncertainties
including competitive factors, the management of growth, and
other  risks  detailed from time to time  in  the  Company's
filings   and  reports  with  the  Securities  and  Exchange
Commission including the Company's Annual Report on Form 10-
K  for  the  year ended March 31, 2004. Such statements  are
based on the beliefs of the Company's management as well  as
assumptions  made by and information currently available  to
Company  management.  Actual events or  results  may  differ
materially.

                          ## End ##
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{"company-data": {"conformed-name": "NICHOLAS FINANCIAL INC", "cik": "0001000045", "assigned-sic": "6153", "irs-number": "593019317", "state-of-incorporation": "FL", "fiscal-year-end": "0331"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-26680", "film-number": "04896113"}, "business-address": {"street1": "2454 MCMILLEN BOOTH RD", "street2": "BLDG C 501 B", "city": "CLEARWATER", "state": "FL", "zip": "33759", "phone": "8137260763"}, "mail-address": {"street1": "2454 MCMULLEN BOOTH RD", "street2": "BLDG C SUITE 501B", "city": "CLEARWATER", "state": "FL", "zip": "33759"}}
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 1, 2004

                   NICHOLAS FINANCIAL, INC.
    (Exact name of registrant as specified in its Charter)

    British Columbia, Canada      0-26680          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                           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)
2

Item 5.     Other Events

     Nicholas Financial, Inc. announced effective today, the
Company  has  executed an amendment to its  Line  of  Credit
Agreement.  This amendment increases the revolving  Line  of
Credit  to $85 million; it extends the maturity date of  the
Line  until November 30, 2006, and includes the addition  of
the Bank of Scotland as its third participating bank.

Exhibit #      Description

 99   Press  release  dated  July 1,  2004,  announcing  the
        amendment to its Line of Credit Agreement.
3

                         SIGNATURES

   Pursuant  to the requirements of the Securities  Exchange
Act  of 1934, the Registrant has duly caused this Report  to
be  signed  on its behalf by the undersigned, hereunto  duly
authorized.

                  NICHOLAS FINANCIAL, INC.
                        (Registrant)

  Date: July 1, 2004            /s/ Peter L. Vosotas
                                Peter L. Vosotas
                                Chairman, President,
                                Chief Executive Officer
                                (Principal Executive Officer)

    Date: July 1, 2004         /s/ Ralph T. Finkenbrink
                               Ralph T. Finkenbrink
                               (Principal Financial
                                Officer and Accounting
                                Officer)
4

Exhibit Index

Exhibit     Description

99          Press release dated July 1, 2004, announcing the
            amendment to its Line of Credit Agreement.
5

                    Exhibit 99

              FOR IMMEDIATE RELEASE

Nicholas

Nicholas Financial, Inc.
Corporate Headquarters

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

Contact: Ralph Finkenbrink
         Sr. Vice President, Finance

NASDAQ: NICK
Web site: www.nicholasfinancial.com
Ph # - 727-726-0763
Fax # - 727-726-2140

           Nicholas Financial Announces Revolving
           Line of Credit Increase to $85,000,000
              Bank of Scotland joins Consortium

July  1,  2004  - Clearwater, Florida - Nicholas  Financial,
Inc.  (Nasdaq,  NICK), announced effective today,  that  the
Company  has executed an amendment to its revolving line  of
credit  agreement.  This amendment increases  the  revolving
line  of credit to $85 million and extends the maturity date
of  the  line  until November 30, 2006.  The  new  agreement
includes  the  addition  of Bank of Scotland  as  its  third
participating bank.  Bank of Scotland, whose parent HBOS plc
is the 6th largest bank in Europe, has agreed to become part
of  the  consortium  of  lenders to the  Company.   Bank  of
America has been the Company's lead lender since 1993.   The
participating  lenders  are First Tennessee  Bank,  Hibernia
National Bank and now Bank of Scotland.

According  to  Peter  Vosotas, Chief Executive  Officer  and
President,  "The Company is pleased to add Bank of  Scotland
to its lending consortium as it gives the Company additional
leverage with its lenders.  It allows the Company to  extend
and  expand  its revolving line of credit without  straining
the  lending limits with any of these banks.  Extending  the
line of credit at this time gives the company the money that
it  needs  to  continue its controlled growth for  the  next
three (3) years."

Founded in 1985, with assets of $103,223,000 as of March 31,
2004,  Nicholas  Financial is one of  the  largest  publicly
traded  specialty consumer finance companies  based  in  the
Southeast.  The Company presently operates out of 32  branch
locations in both the Southeast and the Midwest States.  The
Company  has approximately 6,500,000 shares of common  stock
outstanding. For an index of Nicholas Financial Inc.'s  news
releases or to obtain a specific release, visit our web site
at www.nicholasfinancial.com.

Except for the historical information contained herein,  the
matters  discussed  in  this news release  include  forward-
looking  statements  that  involve risks  and  uncertainties
including competitive factors, the management of growth, and
other  risks  detailed from time to time  in  the  Company's
filings   and  reports  with  the  Securities  and  Exchange
Commission including the Company's Annual Report on Form 10-
K  for  the  year ended March 31, 2004. Such statements  are
based on the beliefs of the Company's management as well  as
assumptions  made by and information currently available  to
Company  management.  Actual events or  results  may  differ
materially.

                          ## End ##