<PAGE>
Filed Pursuant to 424(B)(3)
File No. 333-24115
YOUR MONEY CAN BEGIN EARNING THESE HIGH RATES
PROSPECTUS SUPPLEMENT DATED AUGUST 15, 1997
INVESTMENT NOTES
<TABLE>
<CAPTION>
---------------------------------- ----------------------- -------------------------------
TERM RATE ANNUAL YIELD*
================================== ======================= ===============================
<S> <C> <C> <C>
3 MONTHS 7.15% 7.41%
================================== ======================= ===============================
6 MONTHS 8.00% 8.32%
================================== ======================= ===============================
12 MONTHS 8.25% 8.59%
================================== ======================= ===============================
18 MONTHS 8.30% 8.65%
================================== ======================= ===============================
24 MONTHS 8.55% 8.92%
================================== ======================= ===============================
30 MONTHS 9.05% 9.47%
================================== ======================= ===============================
36 MONTHS 9.30% 9.74%
================================== ======================= ===============================
48 MONTHS 9.65% 10.13%
================================== ======================= ===============================
60 MONTHS 10.50% 11.06%
================================== ======================= ===============================
7 YEARS 10.60% 11.18%
================================== ======================= ===============================
10 YEARS 10.75% 11.34%
---------------------------------- ----------------------- -------------------------------
</TABLE>
MINIMUM FOR INVESTMENT NOTES $1,000
NEW MONEY MARKET NOTE --
RATE 6.15% --
ANNUAL YIELD 6.34%
SEE REVERSE FOR IMPORTANT INFORMATION
FOR MORE INFORMATION CALL
1 800-776-4001
AMERICAN BUSINESS FINANCIAL SERVICES, INC.
Balapointe Office Centre
111 Presidential Boulevard, Suite 215
Bala Cywnyd, PA 19004
1 800-776-4001
* The rates for the Investment Notes are available through September 30,
1997.
<PAGE>
An offer can only be made by the Prospectus dated May 27, 1997, delivered in
conjunction with this Rate Supplement dated August 15, 1997. See "Risk Factors"
for a discussion of certain factors which should be considered in connection
with an investment in the Notes.* The Effective Annual Yield assumes all
interest reinvested daily at the stated rate. The rates for the Investment Notes
are available through September 30, 1997. The interest rate paid on the Money
Market Notes is subject to change from time to time in the Company's sole
discretion provided that such rate shall not be reduced below 4.0% per year.
Written notice of any decrease in rate will be provided to holders of such notes
at least 14 days prior to the effective date of the change. No notice will be
provided in connection with an increase in the interest rate paid on such notes.