Which case is better for a new start up company? To have an investor accept royalties or getting a loan with very interest rate?

A new entrepreneur who has great business ideas can really benefit from royalty financing. Perhaps one of the greatest financial benefits of royalty financing is that it shows up on the firm's financial statements as an off-balance sheet item known as a contingent liability. A contingent liability is one that may or may not happen. In the case of royalty financing, the liability is contingent on the firm making money.

There are three other major advantages of royalty financing. First, there are no required debt payments to make every month. Second, it does not show up on your balance sheet as debt. Third, it does not involve selling a piece of your business. Perhaps the major disadvantage of royalty financing is its cost to the business owner. It can be quite expensive because the investor in the company's product wants a good return on the money they are using to finance the product since a new product is quite a risky venture.

for first launching acompany ,high interest rate disrupt afirm activity,ITHINK INVESTOR WITH ROYALITY IS BETTER THAN VERY INTERST RATE.