The Quick Payoff

Ryan's has its checks written before if even gets billed. Maybe that's smart and maybe it's not.

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Among vendors like DuBois Chemicals, which sells Ryan's Family Steak Houses Inc. some $700,000 worth of dishwashing soap a year, the chain enjoys a reputation of paying on time. But "on time" hardly does accounts receivable justice. "Our payables are 14 days old or less," boasts Ryan's treasurer Charles Way. And he's talking 14 days after delivery.

But why the hurry, when the cash could be earning interest like everyone else's? Paying immediately finds reward in pricing -- and in excellent service -- Way figures. But because such blandishments can't be quantified, Way admits, it's difficult to measure what they're worth on the books. Ryan's auditors maintain, though, that the company could make a lot of money if it didn't pay its vendors so fast.