A borrower has information that it does not make available to a prospective lender; this is an example of:

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Information asymmetry refers to a situation where one party (in this case, the borrower) has access to information that the other party (the lender) does not have. The borrower may have information about their creditworthiness, income, or other relevant factors that they do not disclose to the lender. This can result in an imbalance of power between the two parties and increase the risk for the lender.

A Borrower Has Information That It Does Not Make Available