Increasing interest expense is a financial accounting term that refers to an increase in the expenses associated with borrowing funds. This often occurs when a company has to pay more money in interest due to rising rates or because of the terms of a new loan. From a business standpoint, increasing interest expense can mean an increase in operating costs, a decrease in available capital, and a decreased ability to expand operations or invest in new projects and initiatives. For businesses looking to maximize their profits, knowing when and how to manage their debt can be a critical factor in reaching their long-term goals.