PRINCE2Â® (Projects IN Controlled Environments) is a structured project management method, PRINCE2 and certification programme for practitioners in the methodology who are accredited, qualified through training. PRINCE2 emphases dividing projects into manageable and controllable stages.
DEFINITION of 'Bridge Loan'. A short-term loan that is used until a person or company secures permanent financing or removes an existing obligation. This type of financing allows the user to meet current obligations by providing immediate cash flow.
The typical commercial property bridge loan has a term of six months to one year, although many commercial bridge loan lenders will grant the owner the option to extend for six months to one year for a fee of between a half-point point to two points. Bridge loans are more expensive than permanent loans. In a market where a commercial property borrower might be able to obtain a 6% permanent loan, he might have to pay LIBOR plus 3% to 4% (8.25% to 9.25%), plus a point or two, for a bridge loan from a commercial real estate opportunity fund.