Customer pain points
On average a business will apply for finance only 7 days before they need it. Even the fastest lenders in the market will take 1 to 2 days to inform a client of a decline, and some lenders have turnaround times which can stretch to many weeks.
For the typical user-case of a business looking to achieve funding within a week, each application to a lender unlikely to accept prolongs the customer journey, often exacerbating the need for funding and eating into time they could be using to explore options with funders more likely to lend.
A company looking for a business loan will normally make application to a single lender. Should that application prove unsuccessful, they will typically give up, or try again with one or two additional lenders.
Few businesses will persist beyond this point, most abandoning the process under the assumption that other lenders will have similar criteria, and that it's unlikely they will be able to source the funding they seek. But in many cases, there are other lenders in the market who could have funded them.