Effects of External Factors on Cash Flow Performance of the National Savings and Credit Bank Zambia (NATSAVE)

This was a research on the effects of external factors on cash flow performance of the National Savings and Credit Bank (NATSAVE). The study adopted a case study design. The study used a sample size of 285 respondents. The research objectives were to find out the external factors affecting cash flow performance of NATSAVE; to determine the extent of cash flow pattern at NATSAVE; to examine the effects of external factors on the cash flow performance of NATSAVE and to explore how NATSAVE manage the external factors to increase cash flow performance. The study established that the external factors (economic, technological, sociocultural and legal factors) affect cash flow at the National Savings and Credit Bank. When respondents were asked to rank known factors affecting the cash flow performance of NATSAVE, the majority agreed the NATSAVE has been hit mostly by economic factors, followed by political factors, then technological factors, legal and finally sociocultural factors. The coefficient results indicated that the predictors (economic, technological, sociocultural, political and legal factors) had a statistically significant relationship with cash flow performance at NATSAVE. According to the study findings, among others, some of the effects of the external factors are that economically conditions such as inflation, interest rates, exchange rates, and overall market demand can significantly impact cash flow positively or negatively. Social cultural changes in consumer behavior, trends, and preferences can influence cash flow. Positive political environment improves cash flow. To deal with the external factors affecting organization cash flow, the study results revealed that the majority of the respondents agreed that closely monitoring monetary expenses, providing cash flow training for your team, communicating effectively within the business and value addition could play a major role in improving the cash flow of the organization. Notably, a lot of people disagreed on the use of offloading inventory that doesn’t sell well as a measure to boost cash flow. Some recommendations arising from the study are that there is need for the Zambian government to put up policies that can help reduce inflation, and reduce on the interest rates then the organizations such as banks can improve cash flow and that there is a need to learn the culture and all aspects of social elements around the place in order to formulate strategies to help improve cash flow of an organization.