-----BEGIN PRIVACY-ENHANCED MESSAGE-----
Proc-Type: 2001,MIC-CLEAR
Originator-Name: webmaster@www.sec.gov
Originator-Key-Asymmetric:
 MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen
 TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB
MIC-Info: RSA-MD5,RSA,
 B83UL3v3aza8JLrTIVV7qF9lsHq54gzupBv3BhDbGDMO1LuPLd/NCWQmKX+Sce7J
 UUDt4lfyObz28UM4nqOqpg==

<SEC-DOCUMENT>0001013762-07-001125.txt : 20070629
<SEC-HEADER>0001013762-07-001125.hdr.sgml : 20070629
<ACCEPTANCE-DATETIME>20070629111517
ACCESSION NUMBER:		0001013762-07-001125
CONFORMED SUBMISSION TYPE:	3
PUBLIC DOCUMENT COUNT:		1
CONFORMED PERIOD OF REPORT:	20070629
FILED AS OF DATE:		20070629
DATE AS OF CHANGE:		20070629

ISSUER:		

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			Anchor Funding Services, Inc.
		CENTRAL INDEX KEY:			0001397047
		STANDARD INDUSTRIAL CLASSIFICATION:	SHORT-TERM BUSINESS CREDIT INSTITUTIONS [6153]
		IRS NUMBER:				205456087
		STATE OF INCORPORATION:			DE
		FISCAL YEAR END:			1231

	BUSINESS ADDRESS:	
		STREET 1:		2201-E CROWNPOINT EXECUTIVE DRIVE
		CITY:			CHARLOTTE
		STATE:			NC
		ZIP:			28227
		BUSINESS PHONE:		866-789-3863

	MAIL ADDRESS:	
		STREET 1:		2201-E CROWNPOINT EXECUTIVE DRIVE
		CITY:			CHARLOTTE
		STATE:			NC
		ZIP:			28227

REPORTING-OWNER:	

	OWNER DATA:	
		COMPANY CONFORMED NAME:			SMALLEY KENNETH L
		CENTRAL INDEX KEY:			0001145919

	FILING VALUES:
		FORM TYPE:		3
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-52589
		FILM NUMBER:		07949024

	BUSINESS ADDRESS:	
		BUSINESS PHONE:		(713) 420-2600

	MAIL ADDRESS:	
		STREET 1:		1001 LOUISIANA STREET
		CITY:			HOUSTON
		STATE:			TX
		ZIP:			77002
</SEC-HEADER>
<DOCUMENT>
<TYPE>3
<SEQUENCE>1
<FILENAME>june282007form3smalley_ex.xml
<TEXT>
<XML>
<?xml version="1.0"?>
<ownershipDocument>

    <schemaVersion>X0202</schemaVersion>

    <documentType>3</documentType>

    <periodOfReport>2007-06-29</periodOfReport>

    <noSecuritiesOwned>0</noSecuritiesOwned>

    <issuer>
        <issuerCik>0001397047</issuerCik>
        <issuerName>Anchor Funding Services, Inc.</issuerName>
        <issuerTradingSymbol>NONE</issuerTradingSymbol>
    </issuer>

    <reportingOwner>
        <reportingOwnerId>
            <rptOwnerCik>0001145919</rptOwnerCik>
            <rptOwnerName>SMALLEY KENNETH L</rptOwnerName>
        </reportingOwnerId>
        <reportingOwnerAddress>
            <rptOwnerStreet1>C/O ANCHOR FUNDING SERVICES, INC.</rptOwnerStreet1>
            <rptOwnerStreet2>10801 JOHNSTON ROAD, SUITE 210</rptOwnerStreet2>
            <rptOwnerCity>CHARLOTTE</rptOwnerCity>
            <rptOwnerState>NC</rptOwnerState>
            <rptOwnerZipCode>28226</rptOwnerZipCode>
            <rptOwnerStateDescription></rptOwnerStateDescription>
        </reportingOwnerAddress>
        <reportingOwnerRelationship>
            <isDirector>1</isDirector>
            <isOfficer>0</isOfficer>
            <isTenPercentOwner>0</isTenPercentOwner>
            <isOther>0</isOther>
        </reportingOwnerRelationship>
    </reportingOwner>

    <nonDerivativeTable>
        <nonDerivativeHolding>
            <securityTitle>
                <value>Common Stock</value>
            </securityTitle>
            <postTransactionAmounts>
                <sharesOwnedFollowingTransaction>
                    <value>0</value>
                </sharesOwnedFollowingTransaction>
            </postTransactionAmounts>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </nonDerivativeHolding>
    </nonDerivativeTable>

    <derivativeTable>
        <derivativeHolding>
            <securityTitle>
                <value>Common Stock Purchase Options</value>
                <footnoteId id="F1"/>
            </securityTitle>
            <conversionOrExercisePrice>
                <value>1.25</value>
            </conversionOrExercisePrice>
            <exerciseDate>
                <value>2007-01-31</value>
            </exerciseDate>
            <expirationDate>
                <value>2017-01-31</value>
            </expirationDate>
            <underlyingSecurity>
                <underlyingSecurityTitle>
                    <value>Common Stock</value>
                </underlyingSecurityTitle>
                <underlyingSecurityShares>
                    <value>180000</value>
                </underlyingSecurityShares>
            </underlyingSecurity>
            <ownershipNature>
                <directOrIndirectOwnership>
                    <value>D</value>
                </directOrIndirectOwnership>
            </ownershipNature>
        </derivativeHolding>
    </derivativeTable>

    <footnotes>
        <footnote id="F1">Vest one-third on 2/28/07, one-third on 2/29/08  and one-third on 2/28/09</footnote>
    </footnotes>

    <ownerSignature>
        <signatureName>/s/ Kenneth Smalley</signatureName>
        <signatureDate>2007-06-29</signatureDate>
    </ownerSignature>
</ownershipDocument>
</XML>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
-----END PRIVACY-ENHANCED MESSAGE-----
