This paper builds an inter-organizational Stackelberg game model of trade credit. The incentive-compatible decision on credit term is made endogenously and in coordination to ensure Pareto optimality for both the supplier and the retailer. Our model factors in financing, marketing, operations, default risk, and risk attitude coherently, treating trade credit as their intersectional nexus. We introduce the uncertainty due to the possible default of the retailer on the accounts payable into our mo