<PAGE>
Filed Pursuant to 424(B)(3)
File No. 333-63859
Return on Investment
ABFS Investment Notes
Prospectus Supplement dated January 5, 1999.
Begin Earning These High Rates
Term Rate Annual Yield
3 to 5 Months 7.75% 8.05%
6 to 11 Months 8.00% 8.32%
12 to 17 Months 8.60% 8.97%
18 to 23 Months 8.70% 9.08%
24 to 29 Months 9.00% 9.41%
30 to 35 Months 9.50% 9.96%
36 to 47 Months 9.10% 9.52%
48 to 59 Months 9.35% 9.80%
60 to 83 Months 10.35% 10.90%
84 to 119 Months 10.45% 11.01%
120 Months 10.75% 11.34%
Money Market Notes 6.15% 6.34%*
Minimum for Investment Notes and Money Market Notes $1,000
For more information, call
1.800.776.4001
[LOGO OMITTED]
AMERICAN BUSINESS FINANCIAL SERVICES, INC.
BalaPointe Office Centre
111 Presidential Boulevard
Bala Cynwyd, PA 19004
TEN YEARS
Established 1988
American Business Financial Services, Inc. is a NASDAQ listed Company (ABFI).
An offer can only be made by the Prospectus dated October 20, 1998, delivered in
conjunction with this Rate Supplement dated January 5, 1999. 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
January 15, 1999. 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.
<PAGE>
Return on Investment
ABFS Investment Notes
Prospectus Supplement dated January 5, 1999.
Begin Earning These High Rates
Term Rate Annual Yield
3 to 5 Months 8.00% 8.32%
6 to 11 Months 8.25% 8.59%
12 to 17 Months 8.85% 9.25%
18 to 23 Months 8.95% 9.36%
24 to 29 Months 9.25% 9.69%
30 to 35 Months 9.75% 10.24%
36 to 47 Months 9.35% 9.80%
48 to 59 Months 9.60% 10.07%
60 to 83 Months 10.60% 11.18%
84 to 119 Months 10.70% 11.29%
120 Months 11.00% 11.62%
Money Market Notes 6.15% 6.34%*
Minimum To Earn These Rates On Investment Notes -- $100,000
Minimum for Money Market Notes -- $1,000
Ask About Our Rates For Larger Investments
For more information, call
1.800.776.4001
[LOGO OMITTED]
AMERICAN BUSINESS FINANCIAL SERVICES, INC.
BalaPointe Office Centre
111 Presidential Boulevard
Bala Cynwyd, PA 19004
TEN YEARS
Established 1988
American Business Financial Services, Inc. is a NASDAQ listed Company (ABFI).
An offer can only be made by the Prospectus dated October 20, 1998, delivered in
conjunction with this Rate Supplement dated January 5, 1999. 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
January 15, 1999. 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.
<PAGE>
Return on Investment
ABFS Investment Notes
Prospectus Supplement dated January 5, 1999.
Begin Earning These High Rates
Term Rate Annual Yield
3 to 5 Months 8.25% 8.59%
6 to 11 Months 8.50% 8.87%
12 to 17 Months 9.10% 9.52%
18 to 23 Months 9.20% 9.63%
24 to 29 Months 9.50% 9.96%
30 to 35 Months 10.00% 10.51%
36 to 47 Months 9.60% 10.07%
48 to 59 Months 9.85% 10.35%
60 to 83 Months 10.85% 11.45%
84 to 119 Months 10.95% 11.57%
120 Months 11.25% 11.90%
Money Market Notes 6.15% 6.34%*
Minimum To Earn These Rates On Investment Notes -- $500,000
Minimum for Money Market Notes -- $1,000
Ask About Our Rates For Larger Investments
For more information, call
1.800.776.4001
[LOGO OMITTED]
AMERICAN BUSINESS FINANCIAL SERVICES, INC.
BalaPointe Office Centre
111 Presidential Boulevard
Bala Cynwyd, PA 19004
TEN YEARS
Established 1988
American Business Financial Services, Inc. is a NASDAQ listed Company (ABFI).
An offer can only be made by the Prospectus dated October 20, 1998, delivered in
conjunction with this Rate Supplement dated January 5, 1999. 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 January
15, 1999. 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.
