Filed Pursuant to Rule 424(b)(3)
                                                              File No. 333-90366


           AMERICAN BUSINESS FINANCIAL SERVICES, INC. INVESTMENT NOTES

                                 RATE SUPPLEMENT


                              PROSPECTUS SUPPLEMENT
                                  DATED 1/3/03




               Term                  Rate              Annual Yield*
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            12-23 mos.              6.00%                  6.18%
            24-29 mos.              6.50%                  6.71%
            30-35 mos.              6.90%                  7.14%
            36-47 mos.              8.00%                  8.32%
           48-120 mos.              8.50%                  8.87%

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                Minimum Investment for Investment Notes is $1,000


  AMERICAN BUSINESS FINANCIAL SERVICES, INC. IS A NASDAQ LISTED COMPANY (ABFI)

An offer can only be made by the Prospectus dated October 3, 2002, delivered in
conjunction with this Rate Supplement dated January 3, 2003. 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 from January 3, 2003 to
January 30, 2003.

You may obtain an additional copy of the Prospectus dated October 3, 2002 free
of charge from American Business Financial Services, Inc. by calling (800)
776-4001.

           Investment Notes represent obligations of ABFS and are not
          certificates of deposit or insured or guaranteed by the FDIC
                        or any other governmental agency.



            (LOGO) AMERICAN BUSINESS            For information,
                   FINANCIAL SERVICES, INC.   call 1-800-776-4001

BalaPointe Office Centre   111 Presidential Boulevard    Bala Cynwyd, PA 19004
                               www.ABFSonline.com