<PAGE>

                       SECURITIES AND EXCHANGE COMMISSION
                             Washington, D. C. 20549

                                 FORM 10-KSB/2A

(X) ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT
    OF 1934

                  For the fiscal year ended September 30, 2001

    OR

( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
    ACT OF 1934

    For the transition period from                    to
                                        ------------------    ------------------

                         Commission file number: 0-26906

                               ASTA FUNDING, INC.
--------------------------------------------------------------------------------
                 (NAME OF SMALL BUSINESS ISSUER IN ITS CHARTER)

                  Delaware                                      22-3388607
-----------------------------------------------------      --------------------
     (STATE OR OTHER JURISDICTION OF INCORPORATION           (I.R.S. EMPLOYER
              OR ORGANIZATION)                              IDENTIFICATION NO.)

    210 Sylvan Avenue, Englewood Cliffs, NJ                       07632
----------------------------------------------             --------------------
   (ADDRESS OF PRINCIPAL EXECUTIVE OFFICES)                     (ZIP CODE)

         Issuer's telephone number, including area code: (201) 567-5648

    Securities registered pursuant to Section 12(b) of the Exchange Act: None

      Securities registered pursuant to Section 12(g) of the Exchange Act:

                     Common Stock, par value $.01 per share
--------------------------------------------------------------------------------
                                (Title of Class)

         Check whether the issuer: (1) filed all reports required to be filed by
Section 13 or 15(d) of the Exchange Act during the past 12 months (or for such
shorter period that the Registrant was required to file such reports), and (2)
has been subject to such filing requirements for the past 90 days.
Yes  X    No
    ---      -----

         Check if there is no disclosure of delinquent filers in response to
Item 405 of Regulation S-B contained in this form, and no disclosure will be
contained, to the best of the Registrant's knowledge, in definitive proxy or
information statements incorporated by reference in Part III of this Form 10-KSB
or any amendment to this Form 10-KSB. [ ]

         The Registrant's revenues for the fiscal year ended September 30, 2001
were $24,114,000.

         As of December 14, 2001, the aggregate market value of the Registrant's
Common Stock (based upon the closing sales price for the Common Stock as
reported by NASDAQ on such date) held by non-affiliates of the Registrant was
approximately $27,124,000 (Aggregate market value has been estimated solely for
the purpose of this report. For the purpose of this report it has been assumed
that all officers and directors are affiliates of the Registrant. The statements
made herein shall not be construed as an admission for the purposes of
determining the affiliate status of any person.) As of December 21, 2001, the
Registrant had 4,019,000 shares of Common Stock issued and outstanding.

Transitional Small Business Disclosure Format (check one): Yes      No  X
                                                               ---     ---


Documents Incorporated by Reference:

See the Exhibit Index hereto.

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ITEM 13. EXHIBITS AND REPORTS ON FORM 8-K.

(a)      Exhibits

Exhibit
Number

3.1      Certificate of Incorporation  (1)

3.2      By-laws  (2)

10.1     Stock Option Plan as Amended  (1)

10.2     Employment Agreement dated October 1, 2001, by and between the Company
         and Gary Stern.

10.3     Employment Agreement dated October 1, 2001, by and between the Company
         and Mitchell Herman.

10.4     Amended and Restated Stock Purchase  Agreement dated October 12, 2000,
         between AstaFunding.Com, LLC, a subsidiary of the Company and Small
         Business Resources, Inc., Small Business Worldwide, Inc. and Hispanic
         Business Resources, Inc. (3)

10.6     Common Stock Purchase Warrant dated October 12, 2000, issued by Small
         Business Worldwide to AstaFunding.Com, LLC.  (3)

10.7     Purchase Agreement dated January 18, 2001, between Asta funding, Inc.
         and Heilig Meyers Furniture.  (4)

10.8     Purchase Agreement of a $191 million loan portfolio dated August 31,
         2001, between Computer Finance, LLC, a subsidiary of the Company and a
         major computer manufacturer/retailer. (5)

10.9     Amended Loan and Security Agreement dated November 15, 2001, between
         the Company and Israel Discount Bank of NY.

21.      Subsidiaries of the Company

23.1     Consent of Independent Auditors

-----------------------
         1.       Incorporated by reference to Exhibit 3.1 to the Company's
                  Registration Statement on Form SB-2 (File No. 33-97212)

         2.       Incorporated by reference to the Company's Annual Report on
                  Form 10-KSB for the year ended September 30, 1999.

         3.       Incorporated by reference to the Company's Report filed on
                  Form 8-K/A on November 2, 2000.

         4.       Incorporated by reference to the Company's Report filed on
                  Form 10-QSB on February 9, 2001.

         5.       Incorporated by reference to the company's Report filed on
                  Form 8-K on October 4, 2001.

(b)      Reports on 8-K

         The Registrant filed a report on Form 8-K under Item 5 on October 4,
         2001.

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                                   SIGNATURES

         In accordance with Section 13 or 15(d) of the Exchange Act, the
Registrant caused this report to be signed on its behalf by the undersigned,
thereunto duly authorized.

                                                ASTA FUNDING, INC.



Dated:  March 7, 2002                      By: /s/ Gary Stern
                                              _______________________
                                                       Gary Stern, President

         In accordance with the Exchange Act, this report has been signed below
by the following persons on behalf of the Registrant and in the capacities and
on the dates indicated:

<TABLE>
<CAPTION>
             Signature                                     Title                                       Date
             ---------                                     -----                                       ----
<S>                                  <C>                                                 <C>
/s/ Gary Stern
_________________                    President and Director                              March 7, 2002
Gary Stern

/s/ Mitchell Herman
____________________                 Chief Financial Officer, Secretary, Chief           March 7, 2002
Mitchell Herman                      Accounting Officer and Director

/s/ Arthur Stern
__________________                   Director                                            March 7, 2002
Arthur Stern

/s/ Martin Fife
_________________                    Director                                            March 7, 2002
Martin Fife

/s/ Herman Badillo
___________________                  Director                                            March 7, 2002
Herman Badillo

/s/ General Buster Glosson
__________________________           Director                                            March 7, 2002
General Buster Glosson

/s/ Edward Celano
_________________                    Director                                            March 7, 2002
Edward Celano

/s/ Harvey Leibowitz
____________________                 Director                                            March 7, 2002
Harvey Leibowitz

/s/ Michael Feinsod
___________________                  Director                                            March 7, 2002
Michael Feinsod
</TABLE>