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Butler Lumber Case is not just a bank lending / finance case. Though this
case requires the financial analysis of the company, we should also
consider other factors such as the establishing the long-term relationship
between the bank and Butler Lumber Company. Through fostering this
long-term relationship, the bank is able to capitalize on Butler Lumbers
growth and cross sell the services to Butler Lumber Company.
Additionally, the bank should consider other qualitative factors such as in
this case, Butler Lumber has just been incorporated and it is located in a
growing suburb of a large city. This represents a growth potential in which
the Northrup National Bank could cross sell products. Other qualitative
factors may affect the main revenue drivers for the Butler Lumber
Company. For example, general economic slowdown may slowdown the
rate of increase in sales but it may be protected to some extent from the
fluctuations in new housing construction because of the relatively high
proportion of its repair business. As such, Butler Lumber Case is not just a
bank lending / finance case.