<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 17, 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. 7.75% 8.05% -- -- --
6-11 mos. 8.75% 9.14% -- -- --
12-17 mos. 9.70% 10.18% .25% 9.95% 10.46%
18-23 mos. 9.85% 10.35% .25% 10.10% 10.62%
24-29 mos. 9.95% 10.46% .25% 10.20% 10.73%
30-35 mos. 10.10% 10.62% .25% 10.35% 10.90%
36-47 mos. -- -- -- 11.50% 12.18%
48-59 mos. 10.65% 11.23% .25% 10.90% 11.51%
60-119 mos. 11.25% 11.90% .25% 11.50% 12.18%
120 mos. 11.50% 12.18% .25% 11.75% 12.46%
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</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
*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 17, 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. 2425 East Camelback Road
Suite 1065
Phoenix, AZ 85016
Subordinated Investment Notes represent obligations of the Company and are not
certificates of deposit or insured by the FDIC or any governmental or private www.abfsonline.com
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. Rates offered are good through August 6, 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 17, 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. 7.75% 8.05% -- -- --
6-11 mos. 8.75% 9.14% -- -- --
12-17 mos. 9.70% 10.18% .25% 9.95% 10.46%
18-23 mos. 9.85% 10.35% .25% 10.10% 10.62%
24-29 mos. 9.95% 10.46% .25% 10.20% 10.73%
30-35 mos. -- -- -- 11.50% 12.18%
36-47 mos. 10.35% 10.90% .25% 10.60% 11.18%
48-59 mos. 10.65% 11.23% .25% 10.90% 11.51%
60-119 mos. 11.25% 11.90% .25% 11.50% 12.18%
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
*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 17, 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. 2425 East Camelback Road
Suite 1065
Phoenix, AZ 85016
Subordinated Investment Notes represent obligations of the Company and are not
certificates of deposit or insured by the FDIC or any governmental or private www.abfsonline.com
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 August 6, 2000. 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.
</TABLE>
