<PAGE>
.35% Preferred Bonus For California Residents
Prospectus Supplement Dated December 16, 1999.
<TABLE>
<CAPTION>
TERM RATE ANNUAL YIELD* BONUS BONUS RATE BONUS YIELD*
<S> <C> <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 11.70% 12.41%
120 mos. 11.60% 12.29% +.35 11.95% 12.69%
Money Market Notes 6.15% 6.34% N/A N/A N/A
</TABLE>
FOR MORE INFORMATION CALL: 1-800-776-4001 or 602-952-0105. Minimum for
Investment Notes and Money Market Notes $1000. Ask about our rates for larger
investments.
[ABFS LOGO]
2255 Glades Rd. BalaPointe Office Centre 2425 East Camelback Rd.
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 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 16, 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 reinvested daily at the stated rate. 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.
ABFS MONEY MARKET NOTES NEW REDEMPTION OPTION - Holders of ABFS Money Market
Notes may order payable through drafts from the Company to redeem Money Market
Notes and access their funds. Formerly, holders of Money Market Notes could
redeem their notes by providing a written request to the Company. Holders of
ABFS Money Market Notes may redeem their Notes through drafts from the Company
to access their funds. Holders of Money Market Notes may write up to three
checks per calendar month. Each check must be drawn for an amount of $500 or
more. A check maynot be redeemed at Prime Bank. At the sole discretion of the
Company, check writing capabilities may be deferred for up to 30 days with new
ABFS Money Market Notes. In such event, the Money Market Note may be redeemed
upon 10 business days written notice to the Company. We will extend all
reasonable efforts to verify the drawer signature that appears on ABFS Money
Market Note checks. However, if checks are lost, stolen or otherwise held or
used by an unauthorized individual, the rightful holder of the ABFS Money Market
Note checks must notify the Company within 24 hours; otherwise the Company will
not be responsible for any misappropriation of the underlying funds. Fees will
be assessed in connection with checks written on ABFS Money Market Notes as
follows: Stop Payment -- $20, Not Sufficient Funds (NSF) - $30, Excess Check
(over 3 per month) - $10, Check Photography - $5, Account Research -$5 These
fees may be changed at the discretion of the Company.
<PAGE>
.35% Preferred Bonus For Florida Residents
Prospectus Supplement Dated December 16, 1999.
<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 11.70% 12.41%
120 mos. 11.60% 12.29% +.35 11.95% 12.69%
Money Market Notes 6.15% 6.34% N/A N/A N/A
</TABLE>
FOR MORE INFORMATION CALL: 1-800-776-4001 or 561-988-0488. Minimum for
Investment Notes and Money Market Notes $1000. Ask about our rates for larger
investments.
[ABFS LOGO]
www.abfsonline.com
2255 Glades Rd. BalaPointe Office Centre 2425 East Camelback Rd.
Suite 311E 111 Presidential Boulevard Suite 1065
Boca Raton, FL 33431 Bala Cynwyd, PA 19004 Phoenix, AZ 85016
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 16, 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 reinvested daily at the stated rate. 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.
ABFS MONEY MARKET NOTES NEW REDEMPTION OPTION - Holders of ABFS Money Market
Notes may order payable through drafts from the Company to redeem Money Market
Notes and access their funds. Formerly, holders of Money Market Notes could
redeem their notes by providing a written request to the Company. Holders of
ABFS Money Market Notes may redeem their Notes through drafts from the Company
to access their funds. Holders of Money Market Notes may write up to three
checks per calendar month. Each check must be drawn for an amount of $500 or
more. A check maynot be redeemed at Prime Bank. At the sole discretion of the
Company, check writing capabilities may be deferred for up to 30 days with new
ABFS Money Market Notes. In such event, the Money Market Note may be redeemed
upon 10 business days written notice to the Company. We will extend all
reasonable efforts to verify the drawer signature that appears on ABFS Money
Market Note checks. However, if checks are lost, stolen or otherwise held or
used by an unauthorized individual, the rightful holder of the ABFS Money Market
Note checks must notify the Company within 24 hours; otherwise the Company will
not be responsible for any misappropriation of the underlying funds. Fees will
be assessed in connection with checks written on ABFS Money Market Notes as
follows: Stop Payment -- $20, Not Sufficient Funds (NSF) - $30, Excess Check
(over 3 per month) - $10, Check Photography - $5, Account Research -$5 These
fees may be changed at the discretion of the Company.
