Although the practice of trade credit can be traced back to as far as 1000 BC, it has emerged a fundamental element of contemporary financial supply chain management (FSCM). However, as competitive landscapes and supply chain relationship management (SCRM) practices evolve, so have the nature of trade policies, contracts and its associated intricacies. This thesis explores the proposition by a powerful buyer (a mega-retailer) to counter-negotiate trade credit terms with their suppliers, extending the scope of SCRM research through observing the corresponding changes in socio-economy. In particular, the focus is on the behavioral economics aspect of trade credit terms counter-negotiation, a contemporary and practical issue in SCRM and FSCM flows. This study (1) explores behavioral motivators inherent in the phenomenon; (2) identifies motivators/behaviors that influence the managerial decision to grant further extension on trade credit terms; (3) identifies exchange relationship implications and (4) develops new theoretical and practical knowledge in SCRM in the context of trade terms counter-negotiation. Consequently, a theoretical framework grounded in well-established theories is extracted from various disciplines, where concepts such as perceived value of the relationship, relationship asymmetry, exchange performance comparison, risk taking, commitment and competitive hostility are examined. Finally, analyzing survey data from 13o supplier firms propositioned by a mega retailer on the counter-terms offer, the tentative results indicate that the framework’s hypotheses are largely supported with some exceptions; suggesting some interesting temporal- and/or economic-related implications.