<PAGE>
[ABFS Letterhead]
November XX, 2000
Dear Investor:
Please see the enclosed Rate Supplement dated November XX, 2000 for our most
recent rates and terms.
These rates and terms are all available for a minimum investment of $1,000. ABFS
Investment Notes also feature interest payable monthly, quarterly,
semi-annually, annually, or at maturity.
Please read the Prospectus dated November XX, 2000 and the enclosed Rate
Supplement dated November XX, 2000, carefully before investing, or contact us if
you require an additional copy. To invest, simply specify the terms of the Note
you select, then complete, sign, and mail the Investor Order Form, along with
your check payable to ABFS, in the enclosed postage-paid envelope. If you have
any questions, or need assistance completing your Investor Order Form, please
call us at 1-800-776-4001.
Sincerely,
Jerry Rappaport Ray Bucceroni
Senior Vice President Senior Vice President
An offer can only be made by the Prospectus dated November XX, 2000, delivered
in conjunction with this Rate Supplement dated November XX, 2000. See "Risk
Factors" 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. The effective annual yield assumes all interest is invested
for 365 days. Rates offered are available through November XX, 2000.
The investment notes and money market notes represent obligations of ABFS and
are not certificates of deposit or insured or guaranteed by the FDIC or any
other governmental agency.
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At Your Request,
ABFS is pleased to provide you
with the enclosed information
for your review.
What's Inside:
o investor order form
o reply envelope
o prospectus
o rate supplement
POSTMASTER DELIVER TO THE FOLLOWING ADDRESSEE
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AMERICAN BUSINESS
FINANCIAL SERVICES INC.
------------------------(R)
BalaPointe Office Centre 111 Presidential Boulevard Bala Cynwyd, PA 19004
1.800.776.4000
www.ABFSonline.com
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Investor Order Form
(place in the prepaid envelope)
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INVESTOR: Please Indicate your investment order below. Fill in all terms and
amounts.
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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:
Term __________________________ Amount $ ____________________
Term __________________________ Amount $ ____________________
Term __________________________ Amount $ ____________________
Term __________________________ Amount $ ____________________
The TOTAL Amount of my INVESTMENT NOTE Purchase is $ ___________________________
Rates established at the date of purchase as set forth in the current Prospectus
and Rate 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 $ ________________
(minimum $1,000)
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These Notes are not certificates of deposit or other obligations of or
guaranteed by a depository institution. The payment of principle and interest on
the Notes is not insured or guaranteed by the FDIC or any other governmental
agency.
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INVESTOR: Please print all information below to complete your order.
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<S> <C>
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) _____________________________________________________
Minors Name _____________________________________________ Minor's SSN __________________________
Under the Uniform Gifts to Minors Act
</TABLE>
Signature Verification
Under penalties of perjury, I certify that:
1. The social securtiy number shown on this form is correct.
2. 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.
2. I am a bona fide resident of the state listed above.
4. I have received a copy of the Prospectus dated November XX, 2000.
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 111 Presidential BoulevardBala Cynwyd, PA 19004
<PAGE>
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ABFS Investment Notes
BEGIN EARNING THESE HIGH RATES
Prospectus Supplement dated November XX, 2000
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----------------------------------------------------------------
Term Rate Annual Yield*
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3-5 mos. % %
6-11 mos. % %
12-17 mos. % %
18-23 mos. % %
24-29 mos. % %
30-35 mos. % %
36-47 mos. % %
48-59 mos. % %
60-119 mos. % %
120 mos. % %
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Money Market Note
Rate: %
Annual Yield: %*
Minimum for Investment Notes and Money Market Notes $1,000
For information, call
1.800.776.4001
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<S> <C> <C> <C>
Bala Pointe Office Center 111 Presidential Boulevard, Suite 215 Bala Cynwyd, PA 19004
</TABLE>
www.ABFSonline.com
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AMERICAN BUSINESS FINANCIAL SERVICES, INC. IS A NASDAQ LISTED COMPANY (ABFI).
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An offer can only be made by the Prospectus dated November XX, 2000 delivered in
conjunction with this Rate Supplement dated November XX, 2000. 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 rates for the Investment Notes 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
% 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. You may obtain an additional copy of the prospectus, dated
__________________, free of charge from American Business Financial Services,
Inc. by calling (800) 776-4001.
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.
<PAGE>
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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
--------------------------------------------------------------------------------
AMERICAN BUSINESS CREDIT, INC.
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.
PROCESSING SERVICE CENTER, INC.
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.
NJMIC
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.
UPLAND MORTGAGE
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.
For more information, call
1.800.776.4001
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<CAPTION>
<S> <C> <C> <C>
Bala Pointe Office Center 111 Presidential Boulevard, Suite 215 Bala Cynwyd, PA 19004
</TABLE>
AMERICAN BUSINESS FINANCIAL SERVICES, INC. IS A NASDAQ LISTED COMPANY (ABFI).
www.ABFSonline.com
<PAGE>
[GRAPHIC OMITTED]
AMERICAN BUSINESS FINANCIAL SERVICES, INC., IS A NASDAQ LISTED COMPANY (ABFI).
------------------------
AMERICAN BUSINESS
FINANCIAL SERVICES INC.
------------------------(R)
BalaPointe Office Centre 111 Presidential Boulevard Bala Cynwyd, PA 19004
1.800.776.4000
www.ABFSonline.com
