It is possible to get your engine overhaul or factory engine financed. The biggest stipulation is that your aircraft is either owned outright or can be refinanced with a favorable debt to equity ratio. No finance company in aviation will be in 2nd position on the loan.
There are four main companies that do financing:
- Van Bortel
- Dorr Aviation
- Air Fleet Capital
The last I checked in early 2015, interest rates were between 5-8%. But we know those can fluctuate daily.