Pythagor

THE NEW WAY OF BOOSTING PERFORMANCE AND PROSPECTS IN THE RESTAURANT INDUSTRY

A NEW CREDIT ANALYSIS INSTRUMENT BUT NOT ONLY THAT…

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WHAT IS PYTHAGOR

Pythagor is a FinTech algorithm which supports the analysis of current and prospective markets.

Pythagor stems from the desire to revolutionize the creditworthiness assessment methods for SMEs operating in the catering sector by allowing access to credit for all deserving small and medium-sized businesses that could be excluded if only traditional credit assessments were followed.

Pythagor lends itself to a multiplicity of uses by stakeholders involved in the set-up, management and evaluation of companies in the catering sector: entrepreneurs and future entrepreneurs, investors in companies and restaurant chains, bank credit managers and other lenders, risk managers of private equity and real estate funds.

HOW IT WORKS AND WHAT ADVANTAGES DOES IT OFFER?

Pythagor provides a complete picture of the company's solidity in real time
HOW IT WORKS AND WHAT ADVANTAGES DOES IT OFFER?

It intends to go beyond the more traditional and rigid credit market valuations based solely on economic data and the company's history, but whose balance sheets and available data will already be out-of-date when the financial analysis is carried out.

The Pythagor algorithm measures in real time the positioning of a company within the target market and its web reputation.

This is made possible thanks to the use of specific data to analyze the competitors and the most appropriate behaviour for a company’s prospects in a specific location.

01 - THE DIGITAL REVOLUTION

Our modern world is witnessing a digital revolution which is changing our daily habits.
We live in an increasingly interconnected world, taking part in continual transformations under the increasing influence of technology.

Everything is becoming just a click away and information travels quickly and directly to offer the best possible experience to the consumer.
Despite some reluctance to changes imposed from outside, this technological revolution’s impact is being felt across the board, not just in the banking and financial sector.

01 - THE DIGITAL REVOLUTION
02 - TRADITIONAL CREDIT LENDING

The difficulty of banking institutions in understanding the real risk of small and medium-sized enterprises has led to a strong grip on granting credit .

The slowness of the banks to adapt their assessment methods to technological changes has led to a credit crunch as financial institutions struggle to understand SMEs creditworthiness.
The traditional credit evaluation models do not provide for the analysis of fundamental new information available through open data, big data and social data.

02 - TRADITIONAL CREDIT LENDING
03 - PYTHAGOR'S MISSION

Pythagor is able to provide the decision-maker 360 ° evaluation of a company seeking a loan or a guarantee, analyzing in real time all data related to other restaurants and potential customers in the area and to allow future businesses to forecast cash flow.
In this way, Pythagor is not limited to only evaluating the borrower, but also its competitors and customers.
This deeper analysis, based on real live data, makes it possible for business projects to understand their repayment capacity, thus delivering added value for banking and financial institutions in credit assessment.

In another respect, the new Corporate Crisis and Insolvency Code (which will come into force in 2020) expressly requires individual entrepreneurs to adopt "appropriate measures to promptly detect a state of crisis". In particular, the so-called "crisis indicators" include indexes that provide evidence of sustainability of debt for at least six months and the prospect for business continuity in the current year..

And with reference to the catering sector, we believe the use and spread of the Pythagor algorithm will contribute to providing a vital instrument for the evaluation indices of future company cash flows.

The Italian experience may also be used to combine the analysis of historical and / or official data (for example, the deposited financial statements) with newly-conceived qualitative elements, "sensitive" to the specific business reality.

03 - PYTHAGOR'S MISSION

ALGORITHM

Our algorithm builds an evolved data base to understand, together with other elements of traditional analysis, the potential cash flows of a specific business project in the catering sector and, therefore, among other things, whether or not it is "bankable" (ie credit worthy).

Let's assume that a restaurant owner decides to open a second restaurant in Milan and he/she needs a loan.
The Pythagor algorithm is able to evaluate the potential of the new restaurant based on the data.

Pythagor empowers new companies to:

1 - evaluate the behaviour of customers in the target sectors with ”live” analysis of the data relating to other restaurants in a given area or street;

2 - and therefore contributes to a company's success by calculating the possible cash flows the business could generate, thus integrating the traditional risk scoring tools;

3 - Moreover, using Pythagor enables existing companies to:

a - analyse the "empirical" coherence between official data - per se - historical and daily data;

b - understand its own market trends and improve profit margins.

Thanks to this profiling and monitoring tool, impaired exposures, defaults (UTP) and non-performing loans (NPL) will fall below the average, reducing the risk for banks and financial institutions.

The user, from the first day of research, can archive their results and update them over time.

ALGORITHM

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