Final answer:
A credit report provides financial information about a borrower, illustrating their loan balances, payment history, and any personal bankruptcies, helping lenders evaluate their risk.
Step-by-step explanation:
The document that provides financial information about a borrower, such as loan balances, payment histories, and personal bankruptcies is a credit report. A credit report is essential for lenders to assess the creditworthiness of an individual or business. In the financial capital market, lenders may take several steps to reassure themselves against imperfect information regarding a borrower's ability to repay a loan. These steps include requiring income source information, performing credit checks, asking for a cosigner, and requiring collateral such as property or equipment that can be seized and sold if the loan is not repaid in time.