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This is the first of a two-case series (199-001-1 and 199-002-1). This case examines the circumstances surrounding a serious downturn in the trading performance of a medium-sized family owned, painting and contracting business. Cash flow problems and a breakdown in trust between the company and its bankers threaten its future. The task is to evaluate the financial position of the company to assess the likelihood of the bank being willing to provide sufficient funds to enable its survival. The objectives of this case are to: (1) develop awareness of the nature of a business engaged in contracting activity and of the implications that impact on its financial performance and reporting thereof; (2) introduce and exercise tools and concepts of financial statement analysis (including financial ratios analysis, working capital and cash-flow statement appraisal); (3) introduce and exercise tools and concepts of corporate credit appraisal (including the 5-C's of credit appraisal and security evaluation); and (4) provoke thought about the financial and non-financial factors that impact upon the quality of a bank-client relationship. This case was written with the support of a Philip Law Scholarship awarded by The Case Centre.