<PAGE>
1.800.776.4001
ABFS
WE ARE THE FUTURE
POSTMASTER DELIVER TO FOLLOWING ADDRESSEE
Sample A. Sample
Apt. 1-A
123 Any Street
Anytown, US 12345-6789
AT YOUR REQUEST,
ABFS IS PLEASED TO PROVIDE YOU WITH THE ENCLOSED INFORMATION FOR YOUR REVIEW.
Dear Investor:
American Business Financial Services, Inc. (ABFS) is pleased to present you with
its newest prospectus dated August 1, 2000. The new prospectus details an
offering of $350.0 million of American Business Financial Services, Inc.
Investment Notes and Money Market Notes. This prospectus replaces the prospectus
dated October 15, 1999.
ABFS Investment Notes offer the following features to investors like you--fixed
rates, interest compounded daily until maturity, flexible terms and interest
paid monthly, quarterly, semiannually, annually, or at maturity. To read more
about ABFS' performance through March 31, 2000, please refer to the appropriate
sections of the prospectus.
ABFS invites you to consider its Investment Notes as part of your overall
investment strategy. Please read the attached Prospectus carefully, including
the "Risk Factors," before investing. To invest with ABFS, complete, sign, and
mail the Investor Order Form, along with your check made payable to American
Business Financial Services, Inc., in the enclosed postage-paid envelope.
American Business Financial Services, Inc. thanks you for your interest in its
Investment Notes. Please feel free to call us at 1-800-776-4001 with any
questions you may have.
Sincerely,
/s/ Raymond Bucceroni
Senior Vice President
American Business Financial Services, Inc.
/s/ Jerry Rappaport
Senior Vice President What's Inside
American Business Financial Services, Inc. >>Investor Order Form
>>Reply Envelope
>>Questions & Answers
>>Prospectus
>>Prospectus Supplement
[GRAPHIC OMITTED]
BalaPointe Office Centre o 111 Presidential Boulevard o Bala Cynwyd, PA 19004
www.ABFSonline.com
<PAGE>
[GRAPHIC OMITTED]
short trim
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PROSPECTUS SUPPLEMENT
BONUS OFFER
American Business Financial Services, Inc. Investment Note Yielding
Prospectus Supplement Dated . %*
<TABLE>
<CAPTION>
AMERICAN BUSINESS FINANCIAL SERVICES, INC.
TERM RATE ANNUAL YIELD BONUS BONUS RATE BONUS YIELD
<S> <C> <C> <C> <C> <C>
3-5 mos.
6-11 mos.
12-17 mos.
18-23 mos.
24-29 mos.
30-35 mos.
36-47 mos.
48-59 mos.
60-83 mos.
84-119 mos.
120 mos.
</TABLE>
Minimum for Investment Notes $1,000.
Ask about our rates for larger investments. [GRAPHIC OMITTED]
Please call (800) 776-4001 for more information.
American Business Financial Services, Inc. is a NASDAQ
listed Company (ABFI).
*The Effective Annual Yield assumes all interest remains invested for 365 days.
American Business Financial Services, Inc. is a publicly traded Company
(NASDAQ;ABFI). An offer can only be made by the Prospectus dated delivered in
conjunction with this Prospectus Supplement dated . 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.
These Notes are not certificates of deposit or other obligations of or
guaranteed by the depository institution. The payment of principal and interest
on these Notes is not insured by the FDIC or guaranteed by any governmental or
private insurance fund or any other entity. This announcement is neither an
offer to sell nor a solicitation of an offer to buy Subordinated Investment
Notes. This offer is made by prospectus only. The rates are available through
.
BalaPointe Office Centre 2255 Glades Road 2425E Camelback Road
111 Presidential Boulevard Suite 311 E Suite 1065
Bala Cynwyd, PA 19004 Boca Raton, FL 33431 Phoenix, AZ 85016
www.ABFSonline.com
<PAGE>
AMERICAN BUSINESS FINANCIAL SERVICES
INVESTMENT NOTES:
Prospectus Supplement Dated
. % Preferred
Bonus
<TABLE>
<CAPTION>
ABFS Offers Bonus Rates For Investors
TERM RATE ANNUAL YIELD* BONUS BONUS RATE BONUS YIELD*
<S> <C> <C> <C> <C> <C>
3-5 mos.
6-11 mos.
12-17 mos.
18-23 mos.
24-29 mos.
30-35 mos.
36-47 mos.
48-59 mos.
60-83 mos.
84-119 mos.
120 mos.
</TABLE>
Minimum for Investment Notes $1,000.
Ask about our rates for larger investments.
Please call (800) 776-4001 for more information.
[GRAPHIC OMITTED]
American Business Financial Services, Inc. is a NASDAQ
listed Company (ABFI).
*The Effective Annual Yield assumes all interest remains invested for 365 days.
American Business Financial Services, Inc. is a publicly traded Company
(NASDAQ;ABFI). An offer can only be made by the Prospectus dated delivered in
conjunction with this Prospectus Supplement dated . 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.
These Notes are not certificates of deposit or other obligations of or
guaranteed by the depository institution. The payment of principal and interest
on these Notes is not insured by the FDIC or guaranteed by any governmental or
private insurance fund or any other entity. This announcement is neither an
offer to sell nor a solicitation of an offer to buy Subordinated Investment
Notes. This offer is made by prospectus only. The rates are available through
.
BalaPointe Office Centre 2255 Glades Road 2425E Camelback Road
111 Presidential Boulevard Suite 311 E Suite 1065
Bala Cynwyd, PA 19004 Boca Raton, FL 33431 Phoenix, AZ 85016
www.ABFSonline.com
<PAGE>
AMERICAN BUSINESS FINANCIAL SERVICES
INVESTMENT NOTES:
Prospectus Supplement Dated
SPECIAL 20-MONTH OFFER
%
ANNUAL YIELD*
<TABLE>
<CAPTION>
TERM RATE ANNUAL YIELD* BONUS BONUS RATE BONUS YIELD
<S> <C> <C> <C> <C> <C>
3-5 mos.
6-11 mos.
12-17 mos.
20 mos. --- --- --- . % . %
18-23 mos.
24-29 mos.
30-35 mos.
36-47 mos.
48-59 mos.
60-83 mos.
84-119 mos.
120 mos.
</TABLE>
Minimum for Investment Notes $1,000.
Ask about our rates for larger investments.
Please call (800) 776-4001 for more information.
[GRAPHIC OMITTED]
American Business Financial Services, Inc. is a NASDAQ
listed Company (ABFI).
*The Effective Annual Yield assumes all interest remains invested for 365 days.
American Business Financial Services, Inc. is a publicly traded Company
(NASDAQ;ABFI). An offer can only be made by the Prospectus dated delivered in
conjunction with this Prospectus Supplement dated . 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.
These Notes are not certificates of deposit or other obligations of or
guaranteed by the depository institution. The payment of principal and interest
on these Notes is not insured by the FDIC or guaranteed by any governmental or
private insurance fund or any other entity. This announcement is neither an
offer to sell nor a solicitation of an offer to buy Subordinated Investment
Notes. This offer is made by prospectus only. The rates are available through
.
BalaPointe Office Centre 2255 Glades Road 2425E Camelback Road
111 Presidential Boulevard Suite 311 E Suite 1065
Bala Cynwyd, PA 19004 Boca Raton, FL 33431 Phoenix, AZ 85016
www.ABFSonline.com
<PAGE>
ABFS Investment Notes
Begin Earning These High Rates
Prospectus Supplement Dated
TERM RATE ANNUAL YIELD*
3 to 5 Months
6 to 11 Months
12 to 17 Months
18 to 23 Months
24 to 29 Months
30 to 35 Months
36 to 47 Months
48 to 59 Months
60 to 83 Months
84 to 119 Months
120 Months
Minimum for Investment Notes and Money Market Notes $1,000.
Ask About Our Rates For Larger Investments.
For More Information, Call (800) 776-4001
[GRAPHIC OMITTED]
BalaPointe Office Centre o 111 Presidential Boulevard o Bala Cynwyd, PA 19004
2255 Glades Road o Suite 311 E o Boca Raton, FL 33431
2425E Camelback Road o Suite 1065 o Phoenix, AZ 85016
American Business Financial Services, Inc. is a publicly traded Company
(NASDAQ;ABFI).
*The Effective Annual Yield assumes all interest remains invested for 365 days.
American Business Financial Services, Inc. is a publicly traded Company
(NASDAQ;ABFI). An offer can only be made by the Prospectus dated delivered in
conjunction with this Prospectus Supplement dated . 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.
These Notes are not certificates of deposit or other obligations of or
guaranteed by the depository institution. The payment of principal and interest
on these Notes is not insured by the FDIC or guaranteed by any governmental or
private insurance fund or any other entity. This announcement is neither an
offer to sell nor a solicitation of an offer to buy Subordinated Investment
Notes. This offer is made by prospectus only. The rates are available through
.
**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.
