<PAGE>
Filed Pursuant To 424(B)(3)
File No. 333-24115
YOUR MONEY CAN BEGIN
EARNING THESE HIGH RATES
PROSPECTUS SUPPLEMENT DATED FEBRUARY 10, 1998
INVESTMENT NOTES
Term Rate Annual Yield*
--------- ------ -------------
3 Months 7.15% 7.41%
6 Months 8.00% 8.32%
12 Months 8.50% 8.87%
18 Months 8.55% 8.92%
24 Months 8.65% 9.03%
30 Months 8.75% 9.14%
36 Months 8.85% 9.25%
48 Months 9.10% 9.52%
60 Months 10.25% 10.79%
7 Years 10.30% 10.84%
10 Years 10.35% 10.90%
Minimum for Investment Notes $1,000
NEW MONEY MARKET NOTE
RATE 6.15% - ANNUAL YIELD 6.34%*
For more information, call
1-800-776-4001
American Business
Financial Services, Inc.
BalaPointe Office Centre
111 Presidential Boulevard, Suite 215
Bala Cynwyd, PA 19004
1-800-776-4001
AMERICAN BUSINESS FINANCIAL SERVICES, INC.
IS A NASDAQ LISTED COMPANY (ABFI).
An offer can only be made by the Prospectus dated February 10, 1998,
delivered in conjunction with this Rate Supplement dated February 10, 1998.
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
March 23, 1998.
The interest rate paid on the Money Market Notes is subject to change
from time to time at 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.
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American Business
Financial Services Inc.(R)
BalaPointe Office Centre
111 Presidential Boulevard
Bala Cynwyd, PA 19004
INVEST WISELY. INVEST SIMPLY.
Dear Investor:
Sometimes investing your money can be anything but simple. With so many options
in the world, making financial decisions can be a difficult chore. But American
Business Financial Services is answering back with a trend of simplicity.
ABFS is a company with a history of prosperity. From our fixed rate Investment
Notes to our Money Market Notes, you have two maintenance-free ways to invest.
The attached Prospectus, dated February 10, 1998, details the latest
$125,000,000 offering.
Consider your choice: Investment Notes with annual yields as high as 10.90%, and
a flexible Money Market Note with an annual yield of 6.34%. You'll soon see that
the high returns have created a simple path for investors: Invest money. Accrue
the interest. Reap the yields.
Investors have purchased over $100 million in ABFS Notes. Those with maturities
of 12 months and longer pay interest monthly, quarterly, semi-annually, or
annually. Other rates and terms are available as detailed in the Prospectus and
on the Rate Supplement on the back page. It's simple; the only decision you have
to make is how you want to invest. Whatever the term, your interest will grow to
higher yields when left to compound daily until maturity.
To invest, first read the attached Prospectus and Rate Supplement, then simply
complete, sign, and return the enclosed Investor Order Form along with your
check payable to American Business Financial Services, Inc. A return envelope is
provided for your convenience.
In the excitement and fury that ends this millennium, look to ABFS for
investment opportunities. Invest with simplicity. Invest with history. Invest
with ABFS.
If you have any questions, or require additional information, please
call 1.800.776.4001.
Sincerely,
American Business Financial Services, Inc.
/s/ Anthony J. Santilli WHAT'S INSIDE
- --------------------------------- > Investor Order Forms
Anthony J. Santilli > Reply Envelope
Chairman > Questions & Answers
> Prospectus
> Rate Supplement
1-800-776-4001
