EXHIBIT 10.3

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                              AMENDMENT OF SUBLEASE

      AMENDMENT OF SUBLEASE, dated as of September 1, 1996, between ASTA REALTY,
INC., having an office at 210 Sylvan Avenue, Englewood Cliffs, New Jersey 07632
("Sublessor") and ASTA FUNDING INC., having an office at 210 Sylvan Avenue,
Englewood Cliffs, New Jersey 07632 ("Subtenant").

                                    RECITALS

      A. Sublessor entered into a sublease (the "Sublease") dated August 9, 1995
with Subtenant for the premises (the "Premises") in the building located at 210
Sylvan Avenue, Englewood Cliffs, New Jersey (the "Building").

      B. Subtenant now desires to lease from Sublessor and Sublessor desires to
let from Subtenant additional premises in the Building and, in connection
therewith, the parties desire to amend the Sublease, as hereinafter set forth.

                                   AGREEMENT:

      1. Additional Premises. Effective as of the date hereof (the "Effective
Date") the term "Subleased Premises" as used in the Sublease shall be deemed to
include an additional portion of the first floor consisting of approximately an
additional 3,445 rentable square feet and all of Subtenant's obligations with
respect to the Subleased Premises, as set forth in the Sublease and in this
Amendment, shall be deemed to apply thereto.

      2. Rent. Effective as of the Effective Date, the first sentence of
Paragraph 9 of the Sublease is deemed deleted and the following shall be deemed
inserted in its place:

      "The first annual rent ("Fixed Rent") payable hereunder, which shall be
      paid in equal monthly installments, is:

      (i)   the sum of Seventy-Eight Thousand and 00/100 ($78,000.00) Dollars
            per annum from Effective Date until November 14, 1996, both dates
            inclusive;

      (ii)  the sum of Ninety Thousand and 00/100 ($90,000.00) Dollars per annum
            from November 15, 1996 until January 14, 1997 both dates inclusive;
            and

      (iii) the sum of One Hundred Four Thousand One Hundred Twenty-Four and
            72/100 ($104,124.72) Dollars per annum from January 15, 1997 until
            July 31, 2000, both dates inclusive.

      (For the partial years set forth above the minimum rent shall be prorated
      on a per diem basis, at the rate above set forth.)"
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      3. Ratification. Except as otherwise amended herein, the terms of the
Sublease are hereby ratified and affirmed and shall remain in full force and
effect.

      IN WITNESS WHEREOF, Sublessor and Subtenant have executed this Amendment
of Sublease as of the date first set forth above.

                                              SUBLESSOR:                     
                                              
                                              ASTA REALTY, INC.
                                              
                                              By: /s/  Gary Stern
                                                 --------------------------
                                                 Name: Gary Stern
                                                 Title: VP
                                              
                                              SUBTENANT:
                                              
                                              ASTA FUNDING INC.
                                              
                                              By: /s/  Mitchell Herman
                                                 --------------------------
                                                 Name: Mitchell Herman
                                                 Title: CFO


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