<PAGE>
If you require assistance in
completing the order form, [GRAPHIC OMITTED]
Just call 1-800-776-4001.
Investor Order Form
(Place in the prepaid envelope)
--------------------------------------------------------------------------------
INVESTOR: Please indicate your investment order below.
Fill in all terms and amounts.
--------------------------------------------------------------------------------
Investment Notes
Enclosed is my check for the purchase of an American Business Financial
Services, Inc. Investment Note(s). ($1,000 minimum per note.)
Please check one of the following interest payment options:
[ ] Compound interest daily and pay at maturity.
If no interest option is checked, interest will be compounded daily and
paid at maturity.
[ ] Compound interest daily and pay interest by check.
(on maturities of 12 months or longer)
[ ] Monthly [ ] Quarterly
[ ] Semi-Annually [ ] Annually
I have indicated below the amount I wish to invest for each term selected:
(Notes purchased at 18 months or longer are entitled to Bonus basis-points)
Term _________________ Amount $ ___________________
Term _________________ Amount $ ___________________
Term _________________ Amount $ ___________________
Term _________________ Amount $ ___________________
The TOTAL Amount of my INVESTMENT NOTE Purchase is: $____________________
Rates established at the date of purchase and set forth in the current
Prospectus and Prospectus Supplement and fixed until maturity.
Money Market Notes
Enclosed is my check for the purchase of American Business Financial Services,
Inc. Investment Money Market Note(s). Initial Rate is established at the date of
purchase and is calculated as set forth in the current prospectus.
The TOTAL Amount of my MONEY MARKET NOTE Purchase is $____________________
--------------------------------------------------------------------------------
INVESTOR: Please print all information below to complete your order.
--------------------------------------------------------------------------------
Registration Information
Registered Owner __________________________________ SSN/EIN ___________________
___________________________ Telephone Number (____) ___________________________
Date of Birth ________________________ Street Address
_________________________________________________________________________ City
_____________________________________________ State __________________ Zip
________ Second Joint Owner (if applicable) ____________________ SSN
_______________________________ Beneficiary Name
__________________________________ Beneficiary SSN _____________________
Custodian's Name (Only one allowed by Law)
________________________________________________ Minor's Name
_____________________________________ Minor's SSN ________________________ Under
the Uniform Gifts to Minors Act
<PAGE>
Signature Verification
Under penalties of perjury, I certify that:
1. The social security number shown on this form is correct.
2. I have received the prospectus and understand that American Business
Financial Services, Inc. Investment Note(s) and Money Market Note(s)
are not certificates of deposit or other obligations of or guaranteed
by a depository institution. I also understand that the payment of
principal and interest on the Investment Note(s) and Money Market
Note(s) is not insured by the FDIC or guaranteed by any governmental or
private insurance fund or any other entity.
3. I am not subject to backup withholding, either because I have not been
notified by the Internal Revenue Service (IRS) that I am subject to
backup withholding as a result of a failure to report all interest or
dividends, or the IRS has notified me that I am no longer subject to
backup withholding. Only cross out subpart (3) if you are subject to
backup withholding.
4. I am a bona fide resident of the state listed above.
Signature of Registered Owner _____________________________ Date ____________
Joint Signature (if applicable) ___________________________ Date ____________
Payment Instructions
Make your checks payable to: American Business Financial Services, Inc.
BalaPointe Office Centre o 111 Presidential Boulevard
o Bala Cynwyd, PA 19004
<PAGE>
Frequently asked questions about
ABFS Investment Notes
and Money Market Notes . . .
Question
What are American Business Financial Services, Inc. (ABFS) Investment Notes and
Money Market Notes ("Notes")?
Answer
ABFS Investment Notes and Money Market Notes are unsecured subordinated
promissory notes issued by American Business Financial Services, Inc., a
financial services holding company. ABFS Notes represent debt obligations of
American Business Financial Services, Inc.
Question
Are these Notes insured or guaranteed?
Answer
The Notes are not certificates of deposit or other obligations of or guaranteed
by a depository institution. The payment of principal and interest on these
securities is not insured by the FDIC or guaranteed by any governmental or
private insurance fund or any other entity. ABFS relies on revenues from loan
sales, working capital, additional debt financing, and securitization
transactions to repay principal and interest on ABFS Notes.
Question
Why should I consider including ABFS Notes in my investment portfolio?
Answer
ABFS Notes pay highly competitive rates when compared to other investments of
similar risks and maturities. The Notes also offer flexibility to choose from a
selection of terms and interest payment options. With Investment Notes, you have
the opportunity to earn high fixed rates and eliminate the risk of market
fluctuations that may affect your principal or interest rate. Our Money Market
Notes provide a higher degree of liquidity in a variable rate investment.
ABFS Notes are subject to the risks associated with any uninsured subordinated
investment.
Question
What are the investment requirements?
Answer
ABFS Notes are offered at a minimum of $1,000. However, you can invest $3,000,
$5,000, $10,000, or any amount you wish. You may select terms from 3 months to
10 years. Our Money Market Notes have no stated maturity. You have the
flexibility to choose the amount and the term that best meet your investment
needs.
The enclosed Prospectus and Prospectus Supplement describe our Investment Notes,
Money Market Notes and Company in considerable detail. Please read the material
in order to make any informed decisions.
Question
Can I invest in ABFS Investment Notes through my IRA, KEOGH, or SEP?
Answer
You can invest in ABFS Investment Notes through IRAs, Keoghs, or Seps, and other
qualified plans. You may use your current trustee or custodian if they permit.
Money Market Notes are not eligible for IRAs or Keoghs. You may wish to consult
a financial advisor and should review the risk factors before making such an
investment.
<PAGE>
Frequently asked questions about
ABFS Investment Notes
and Money Market Notes . . .
Question
Can my interest be used to supplement my income?
Answer
Yes. You may select to have your interest sent to you monthly, quarterly,
semi-annually, annually or at maturity on Investment Notes with maturities of 12
months or longer. . . or you may want to take advantage of the power of compound
interest and leave your interest until maturity.
Question
May I redeem my ABFS Investment Note before maturity?
Answer
Redemptions will be permitted prior to maturity only in the event of death or,
in certain cases, total permanent disability of a registered owner. Money Market
Notes may be redeemed at any time.
Question
What fees or commissions will I pay?
Answer
Absolutely none. There are no fees and no commissions. You pay nothing extra and
nothing is deducted. This means every dollar of your investment is earning
interest for you. An annual maintenance fee may be charged by the custodian for
IRA/Keogh/SEP accounts.
Question How do I invest?
Answer
It's easy. After reading the Prospectus and Prospectus Supplement, simply
complete and sign the appropriate Investor Order Form. Please be certain to
indicate how long you wish to invest and how often you want to receive your
interest. Finally, return the Investor Order Form along with your check, payable
to American Business Financial Services, Inc., in the self-addressed stamped
envelope provided. You also have the option of making an investment online.
Visit our web site at ABFSonline.com to learn more about our Investment Notes.
This brochure is neither an offer to sell nor a solicitation of an offer to buy
securities. Such an offer can only be made by Prospectus accompanied by a
Prospectus Supplement. Investments should be considered only after a careful
review of all risk factors contained in the Prospectus.
<PAGE>
AMERICAN BUSINESS FINANCIAL SERVICES, INC. (ABFS)
PROVIDES FINANCIAL PRODUCTS AND SERVICES TO INDIVIDUALS AND
BUSINESSES THROUGH OUR SPECIALIZED COMPANIES
ABFS operates through our financial organizations:
[GRAPHIC OMITTED]
Our business loan company has helped many small businesses realize their full
potential with loans ranging from $15,000 to $350,000. With our network of
highly trained sales professionals, ABC does business in the Northeast,
Mid-Atlantic, and Southeast regions. Real estate collateral is required.
[GRAPHIC OMITTED]
NJMIC has built its reputation in the direct-to-broker lending business by
delivering first and second mortgages quickly and easily. As a recognized
industry leader in lending to people with past or even present credit problems,
we offer a loan program for every type of borrower. NJMIC has retail branches in
Delaware, Florida, Maryland, New Jersey, New York, Ohio, and Pennsylvania.
[GRAPHIC OMITTED]
Upland Mortgage offers first and second mortgages personalized to suit the needs
of our customers. We make loans to customers with perfect and less-than-perfect
credit for debt consolidation, home improvement, and a variety of other consumer
needs. Upland is currently licensed to originate and service home equity loans
in 47 states across the United States. Upland Mortgage offers an easy
application process and some of the most competitive rates around.
[GRAPHIC OMITTED]
The Processing Service Center, Inc. and its Bank Alliance Program(R) bring
success to client banks by increasing loan volume, thus generating fee income
and gaining additional CRA credit. PSC does this simply by adding a sub-prime
home equity loan product alternative to the bank's existing product mix. The
transaction is transparent to bank customers.
[GRAPHIC OMITTED]
American Household Mortgage, a division of New Jersey Mortgage, offers loans to
borrowers with favorable credit histories that are underwritten pursuant to
Freddie Mac or Fannie Mae standards to permit their sale in the secondary
market. New Jersey Mortgage typically sells such loans to third parties with
servicing released. New Jersey Mortgage also originates Federal Housing
Authority ("FHA") and Veterans Administration ("VA") loans which are
subsequently sold to third parties with servicing released.
For more information, call
1-800-776-4001
[GRAPHIC OMITTED]
BalaPointe Office Centre o 111 Presidential Boulevard o Bala Cynwyd, PA 19004
<PAGE>
AMERICAN BUSINESS FINANCIAL SERVICES, INC. IS A NASDAQ LISTED COMPANY (ABFI).
An offer can only be made by the Prospectus delivered in conjunction with a
Prospectus Supplement. 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 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.
