<PAGE>
Filed Pursuant to Rule 424(b)(3)
File No. 333-87333
- --------------------------------------------------------------------------------
American Business Financial Services
Investment Notes:
Prospectus Supplement Dated Special 20-Month Offer
March 20, 2000 12.18%
Annual Yield*
<TABLE>
<CAPTION>
- -------------------------------------------------------------------------------------------------------
TERM RATE ANNUAL YIELD* BONUS BONUS RATE BONUS YIELD
- -------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C>
3-5 mos. 7.50% 7.78% -- -- --
6-11 mos. 8.75% 9.14% -- -- --
12-17 mos. 9.60% 10.07% .25% 9.85% 10.35%
20 mos. -- -- -- 11.50% 12.18%
18-23 mos. 9.75% 10.24% .25% 10.00% 10.51%
24-29 mos. 9.85% 10.35% .25% 10.10% 10.62%
30-35 mos. 10.00% 10.51% .25% 10.25% 10.79%
36-47 mos. 10.25% 10.79% .25% 10.50% 11.06%
48-59 mos. 10.55% 11.12% .25% 10.80% 11.40%
60-83 mos. 11.35% 12.01% .25% 11.60% 12.29%
84-119 mos. 11.10% 11.71% .25% 11.35% 12.01%
120 mos. 11.50% 12.18% .25% 11.75% 12.46%
- -------------------------------------------------------------------------------------------------------
</TABLE>
Minimum for Investment Notes $1,000.
Ask about our rates for larger investments.
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
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 March 20, 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
compounded daily based on a 365-day year. *The Effective Annual Yield assumes 2425 East Camelback Road
all interest remains invested for 365 days. Subordinated Investment Notes Suite 1065
represent obligations of the Company and are not certificates of deposit or Phoenix, AZ 85016
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 www.abfsonline.com
Investment Notes. This offer is made by prospectus only. Rates offered are good
through April 23, 2000. These rates are available to residents of the following
states: CT, DE, FL, GA, IL, IN, KY, MA, MD, MI, NC, NH, NY, OH, RI, SC, TN, TX,
VA, VT, WI, WV.
</TABLE>
