<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) September 18,
                              1998
                                
                                
                                
                     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                                33759
(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

     Effective September 18, 1998,  the Company renegotiated its
credit  line  with  BankAmerica.   Under  the  terms  of the new
agreement  the  Company's  interest rate will be reduced between
50-100 basis points,  the total credit facility was increased to
35  million  and  the  maturity date of the agreement is June 3,
2001.

     On  September  23, 1998,  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 September 23, 1998   
                       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
September 23, 1998.

                                
                    NICHOLAS FINANCIAL, INC.
                          (Registrant)


  Date: September 23, 1998      /s/ Peter L. Vosotas
                                -------------------------
                                Peter L. Vosotas
                                Chairman, President, Chief
                                Executive Officer
                                (Principal Executive Officer)


  Date: September 23, 1998      /s/ Ralph T. Finkenbrink
                                ---------------------------
                                Ralph T. Finkenbrink
                                (Principal Financial Officer and
                                 Accounting Officer)



<PAGE> 4
        
                             EXHIBIT 99.1 
                                                         
                         FOR IMMEDIATE RELEASE


Nicholas Financial, Inc.
Corporate Headquarters
2454 McMullen-Booth Rd.
Building C, Suite 501
Clearwater, FL 33759

           
  Contact:  Ralph Finkenbrink              NASDAQ:    NICKF
            Vice President, Finance        Web site:  www.nicfn.com
            Nicholas Financial, Inc.
            Ph # - 727-726-0763
            Fax # - 727-726-2140



                                
Nicholas Financial Renegotiates Credit Facility with BankAmerica
                                


Clearwater,  Florida  - September 23, 1998:  Nicholas  Financial,
Inc.  announced today that it has renegotiated and  extended  its
current  revolving  line  of  credit with  BankAmerica.  The  new
agreement reduces the current rate of interest payable by  50-100
basis  points based on current interest rates. The new  agreement
also increases the facility to 35MM and extends the contract term
to June 2001.

According to Peter Vosotas, President and Chairman of the  Board,
"The   Company   continues  to  enjoy  its  mutually   profitable
relationship with BankAmerica, its primary lender since March  of
1993.  With  the  signing  of  this new  agreement,  our  Company
continues  to demonstrate its ability to succeed in the non-prime
automobile  finance  sector  with controlled  growth  and  strict
internal  controls since we started this business  in  1990.  The
Company  is  very  pleased about the potential savings  from  its
reduction in the cost of funds derived from its credit facility."

The  Company  opened its fourteenth  branch office  in  Longwood,
Florida in mid September. This is the twelfth branch in the State
of  Florida.  This branch, as well as the other eleven, purchases
and  services installment sales contracts from automobile dealers
and provides direct consumer loans.
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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) September 18,
                              1998
                                
                                
                                
                     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                                33759
(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

     Effective September 18, 1998,  the Company renegotiated its
credit  line  with  BankAmerica.   Under  the  terms  of the new
agreement  the  Company's  interest rate will be reduced between
50-100 basis points,  the total credit facility was increased to
35  million  and  the  maturity date of the agreement is June 3,
2001.

     On  September  23, 1998,  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 September 23, 1998   
                       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
September 23, 1998.

                                
                    NICHOLAS FINANCIAL, INC.
                          (Registrant)

  Date: September 23, 1998      /s/ Peter L. Vosotas
                                -------------------------
                                Peter L. Vosotas
                                Chairman, President, Chief
                                Executive Officer
                                (Principal Executive Officer)

  Date: September 23, 1998      /s/ Ralph T. Finkenbrink
                                ---------------------------
                                Ralph T. Finkenbrink
                                (Principal Financial Officer and
                                 Accounting Officer)
4
        
                             EXHIBIT 99.1 
                                                         
                         FOR IMMEDIATE RELEASE

Nicholas Financial, Inc.
Corporate Headquarters
2454 McMullen-Booth Rd.
Building C, Suite 501
Clearwater, FL 33759

           
  Contact:  Ralph Finkenbrink              NASDAQ:    NICKF
            Vice President, Finance        Web site:  www.nicfn.com
            Nicholas Financial, Inc.
            Ph # - 727-726-0763
            Fax # - 727-726-2140

                                
Nicholas Financial Renegotiates Credit Facility with BankAmerica
                                

Clearwater,  Florida  - September 23, 1998:  Nicholas  Financial,
Inc.  announced today that it has renegotiated and  extended  its
current  revolving  line  of  credit with  BankAmerica.  The  new
agreement reduces the current rate of interest payable by  50-100
basis  points based on current interest rates. The new  agreement
also increases the facility to 35MM and extends the contract term
to June 2001.

According to Peter Vosotas, President and Chairman of the  Board,
"The   Company   continues  to  enjoy  its  mutually   profitable
relationship with BankAmerica, its primary lender since March  of
1993.  With  the  signing  of  this new  agreement,  our  Company
continues  to demonstrate its ability to succeed in the non-prime
automobile  finance  sector  with controlled  growth  and  strict
internal  controls since we started this business  in  1990.  The
Company  is  very  pleased about the potential savings  from  its
reduction in the cost of funds derived from its credit facility."

The  Company  opened its fourteenth  branch office  in  Longwood,
Florida in mid September. This is the twelfth branch in the State
of  Florida.  This branch, as well as the other eleven, purchases
and  services installment sales contracts from automobile dealers
and provides direct consumer loans.