<PAGE>
Filed Pursuant to Rule 424(b)(3)
File No. 333-87333
--------------------------------------------------------------------------------
Rate Supplement
American Business Financial Services, Inc.
Investment Notes:
Prospectus Supplement Dated July 8, 2000
American Business Financial Services, Inc.
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TERM RATE ANNUAL YIELD* BONUS BONUS RATE BONUS YIELD*
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<S> <C> <C> <C> <C> <C>
3-5 mos. 8.00% 8.32% -- -- --
6-11 mos. 9.00% 9.41% -- -- --
12-17 mos. 9.95% 10.46% .25% 10.20% 10.73%
18-23 mos. 10.10% 10.62% .25% 10.35% 10.90%
24-29 mos. 10.20% 10.73% .25% 10.45% 11.01%
30-35 mos. -- -- -- 11.75% 12.46%
36-47 mos. 10.60% 11.18% .25% 10.85% 11.45%
48-59 mos. 10.90% 11.51% .25% 11.15% 11.79%
60-83 mos. 11.75% 12.46% .25% 12.00% 12.74%
84-119 mos. 11.30% 11.96% .25% 11.55% 12.24%
120 mos. 11.90% 12.63% .25% 12.15% 12.91%
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</TABLE>
Minimum for Investment Notes $100,000.
Please call (800) 776-4001 for more information.
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<CAPTION>
[ABFS LOGO]
<S> <C>
-------------------------------------------------------------------------------- BalaPointe Office Centre
AMERICAN BUSINESS FINANCIAL SERVICES, INC. IS A NASDAQ LISTED COMPANY (ABFI). 111 Presidential Boulevard
-------------------------------------------------------------------------------- Bala Cynwyd, PA 19004
*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 October 15, 1999 2255 Glades Road
delivered in conjunction with this Rate Supplement dated July 8, 2000. See Suite 311E
"Risk Factors" in the Prospectus for a discussion of certain factors which Boca Raton, FL 33431
should be considered in connection with an Investment in the Notes. Interest is 2425 East Camelback Road
compounded daily based on a 365-day year.
Suite 1065
Subordinated Investment Notes represent obligations of the Company and are not Phoenix, AZ 85016
certificates of deposit or insured by the FDIC or any governmental or private
entity. This announcement is neither an offer to sell nor a solicitation of an www.abfsonline.com
offer to buy Subordinated Investment Notes. This offer is made by prospectus
only. The rates are available through July 16, 2000. These rates are available
to residents of the following states: AZ, CA, CO, HI, IA, ID, KS, MN, MO, MT,
ND, NM, NV, OK, OR, UT, WA, WY.
</TABLE>
<PAGE>
Filed Pursuant to Rule 424(b)(3)
File No. 333-87333
--------------------------------------------------------------------------------
Rate Supplement
American Business Financial Services, Inc.
Investment Notes:
Prospectus Supplement Dated July 8, 2000
American Business Financial Services, Inc.
<TABLE>
<CAPTION>
-------------------------------------------------------------------------------------------------------
TERM RATE ANNUAL YIELD* BONUS BONUS RATE BONUS YIELD*
-------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
3-5 mos. 8.00% 8.32% -- -- --
6-11 mos. 9.00% 9.41% -- -- --
12-17 mos. 9.95% 10.46% .25% 10.20% 10.73%
18-23 mos. 10.10% 10.62% .25% 10.35% 10.90%
24-29 mos. -- -- -- 11.75% 12.46%
30-35 mos. 10.35% 10.90% .25% 10.60% 11.18%
36-47 mos. 10.60% 11.18% .25% 10.85% 11.45%
48-59 mos. 10.90% 11.51% .25% 11.15% 11.79%
60-83 mos. 11.75% 12.46% .25% 12.00% 12.74%
84-119 mos. 11.30% 11.96% .25% 11.55% 12.24%
120 mos. 11.90% 12.63% .25% 12.15% 12.91%
-------------------------------------------------------------------------------------------------------
</TABLE>
Minimum for Investment Notes $100,000.
Please call (800) 776-4001 for more information.
[ABFS LOGO]
<TABLE>
<CAPTION>
<S> <C>
-------------------------------------------------------------------------------- BalaPointe Office Centre
AMERICAN BUSINESS FINANCIAL SERVICES, INC. IS A NASDAQ LISTED COMPANY (ABFI). 111 Presidential Boulevard
-------------------------------------------------------------------------------- Bala Cynwyd, PA 19004
*The Effective Annual Yield assumes all interest remains invested for 365 days. 2255 Glades Road
Suite 311E
American Business Financial Services, Inc. is a publicly traded Company (NASDAQ: Boca Raton, FL 33431
ABFI). An offer can only be made by the Prospectus dated October 15, 1999
delivered in conjunction with this Rate Supplement dated July 8, 2000. See 2425 East Camelback Road
"Risk Factors" in the Prospectus for a discussion of certain factors which Suite 1065
should be considered in connection with an Investment in the Notes. Interest is Phoenix, AZ 85016
compounded daily based on a 365-day year.
www.abfsonline.com
Subordinated Investment Notes represent obligations of the Company and are not
certificates of deposit or insured by the FDIC or any governmental or private
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. These rates are available to residents of the following states: AL, AR,
CT, DE, FL, GA, IL, IN, KY, MA, MD, ME, MI, MS, NC, NH, NJ, NY, OH, PA, RI, SC,
TN, TX, VA, VT, WI, WV.
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