<PAGE>
Filed Pursuant to Rule 424(b)(3)
File No. 333-87333
- --------------------------------------------------------------------------------
American Business Financial Services Investment Notes:
Prospectus Supplement Dated
December 21, 1999
Rates for Investment Notes of $1,000
Rate Card .35% Preferred Bonus
ABFS Celebrates With A Bonus Rate For Investors
- --------------------------------------------------------------------------------
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------
TERM RATE ANNUAL YIELD* BONUS BONUS RATE BONUS YIELD*
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
3-5 mos. 7.50% 7.78% +.35 7.85% 8.16%
6-11 mos. 8.75% 9.14% +.35 9.10% 9.52%
12-17 mos. 9.35% 9.80% +.35 9.70% 10.18%
18-23 mos. 9.50% 9.96% +.35 9.85% 10.35%
24-29 mos. 9.75% 10.24% +.35 10.10% 10.62%
30-35 mos. 9.85% 10.35% +.35 10.20% 10.73%
36-47 mos. 10.10% 10.62% +.35 10.45% 11.01%
48-59 mos. 10.45% 11.01% +.35 10.80% 11.40%
60-83 mos. 11.25% 11.90% +.35 11.60% 12.30%
84-119 mos. 11.35% 12.01% +.35 11.95% 12.69%
120 mos. 11.60% 12.29% +.35 11.95% 12.69%
Money Market 6.15% 6.34% N/A N/A N/A
- -------------------------------------------------------------------------------------------------------
</TABLE>
Minimum for Investment Notes and Money Market Notes: $1,000
Ask about our rates for larger investments
Please call (800) 776-4001 for more information
[ABFS LOGO]
2255 Glades Road BalaPointe Office Centre 2425 East Camelback Road
Suite 311E 111 Presidential Boulevard Suite 1065
Boca Raton, FL 33431 Bala Cynwyd, PA 19004 Phoenix, AZ 85016
www.abfsonline.com
- --------------------------------------------------------------------------------
AMERICAN BUSINESS FINANCIAL SERVICES, INC. IS A NASDAQ LISTED COMPANY (ABFI).
- --------------------------------------------------------------------------------
American Business Financial Services, Inc. is a publicly traded Company (NASDAQ:
ABFI). An offer can only be made by the Prospectus dated October 15, 1999,
delivered in conjunction with this Rate Supplement dated December 21, 1999. See
"Risk Factors" in the Prospectus for a discussion of certain factors which
should be considered in connection with an investment in the Notes. Interest is
compounded daily based on a 365-day year. *The Effective Annual Yield assumes
all interest remains invested for 365 days. Rates are subject to change. **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.
