KYB for Small Businesses with PSPs - Is it Really That Hard?

I'm looking into switching PSPs for a small business that accepts some digital payments, and I've encountered a rather tedious KYB process. My question is, has anyone else had a similar experience where some PSPs seem reluctant to onboard small businesses, or is this genuinely a new, stricter standard, not just for $BTC and other cryptocurrencies, but for regular payment channels too?

I understand the need for due diligence to prevent money laundering, but sometimes the detailed information requested, including financial statements from the past two or three years, can be quite challenging for a newly established business. I wonder if major PSPs have significantly different criteria than smaller ones, or if we should just look into specialized PSPs for crypto businesses rather than trying to contend with traditional systems.