Projections are never accurate. Op is starting his first business. I would be surprised if the projections are even 50% accurate.

then go for it. If you can negotiate it down to 30%, or revenue based royalty, that would be great but don’t sweat it. Focus on getting to $200K. My gut feel is that you will end at 40k instead of 200k. What happens if that happens? Will the investor continue to support?

If this is your first business, you hv made a good deal. What is the loan guaranteed against? Are you putting personal assets on the line?