OLD MARKET CAPITAL Corp (NASDAQ: OMCC)

Nicholas Financial Inc., also known as NICK, is a company that operates in the specialized consumer finance industry. The company is headquartered in Clearwater, Florida, but was incorporated in British Columbia, Canada in 1986. Nicholas Financial Inc. primarily acquires and services automobile finance installment contracts for purchases of used and new automobiles and light trucks.

The main business activities of Nicholas Financial Inc. are conducted through its wholly-owned subsidiary, Nicholas Financial, Inc. The company has a significant presence in the southeastern United States, with a focus on the states of Florida, Indiana, Kentucky, North Carolina, Ohio, and South Carolina. Nicholas Financial Inc. generates revenue through the acquisition and servicing of automobile finance installment contracts, as well as the sale of consumer-finance related products.

The primary products offered by Nicholas Financial Inc. include Contracts, which are financed for purchases of used and new automobiles and light trucks, and Direct Loans, which are loans originated directly between the company and the consumer. The company's Contracts are predominantly for used vehicles, with an average model year of 2012 and an average loan amount of approximately $12,400. The Contracts are typically secured by a lien on the financed vehicle, and the company requires customers to maintain collision insurance coverage.

Prior to the restructuring of its operations, Nicholas Financial Inc. also originated Direct Loans, which were loans made directly to consumers for purchases of automobiles, watercraft, or other permissible tangible personal property. The company's Direct Loans were typically for amounts ranging from $500 to $11,000 and were secured by a lien on the financed property. However, in 2022, the company announced a change in its operating strategy and restructuring plan, which aimed to reduce operating expenses and free up capital. As part of this plan, the company ceased all originations of Contracts and Direct Loans and outsourced its servicing and collections operations to Westlake Portfolio Management, LLC.

Nicholas Financial Inc. operates in a highly competitive industry, with many other companies offering similar financial products and services. The company's key competitors include Westlake Financial, which acquired NICK's assets in 2024. However, NICK's competitive advantages include its specialized focus on acquiring and servicing automobile finance installment contracts, as well as its ability to offer financing to customers who may not meet the lending standards of traditional lenders. The company's experienced management team and dedicated staff also play a key role in its success.

NICK's customers are primarily individuals who purchase used and new automobiles and light trucks through automobile dealerships. The company's customer base is diverse, with customers from a range of income levels and credit backgrounds. The company's customers are typically required to maintain collision insurance coverage on their vehicles, and failure to do so constitutes a default under the Contract.

In terms of its brand names and trade names, Nicholas Financial Inc. operates under the name NICK and offers its products and services under the names "Contracts" and "Direct Loans". The company's focus on providing financing options for individuals who may not meet the lending standards of traditional lenders, as well as its specialized focus on automobile finance installment contracts, sets it apart in the industry.