We often written that investors should consider at least having some smaller cap companies in their portfolio to generate growth.

It’s difficult for the members of the ASX Top 20 Index to double, triple or quadruple revenues in a short period of time – but smaller companies can do that – if you find the right ones that is.

Here are three that investors might want to consider adding to a solid portfolio…

FSA Group Ltd (ASX: FSA)

FSA Group provides debt solutions and lending services to consumers – mainly to help consolidate debt and sort out their finances – and has a market cap of around $130 million. It’s the largest provider of debt agreements in Australia, originating 48% of all agreements in Australia in 2015. Back in May, the company announced that it had sold its factoring business for around $10 million in after-tax cash. Add to that the company’s cheap price – at $1.05, the company is trading on a trailing P/E ratio of 9.7x and paying a dividend yield of more than 6% – fully franked.

Joyce Corporation Ltd (ASX: JYC)

A retailer of bedding through the Bedshed franchise chain (~30 stores), Joyce Corp has a market cap of around $36 million, but had substantial cash ($13.7m) and property (~$5m) on its balance sheet. The company also owns 51% of KWB Group (Kitchen Connection and Wallspan) – a retailer and installer of custom kitchens and wardrobes – and recently announced the acquisition of 51% of Lloyds Online auctions for $6 million. Lloyds is expected to add $10 million in revenues to Joyce Corp and boost total sales across the network to more than $170 million in the 2017 financial year. (Note: Not all of that is attributable to Joyce Corp).

The company also pays a solid and growing fully franked dividend, and at the current share price of $1.32, looks reasonably cheap.

Cyclopharm Limited (ASX: CYC)

It’s not often that you find a biotech stock that generates growing revenues, is profitable, debt free and also pays out dividends but Cyclopharm is one. The company’s primary product is Technegas – a lung imaging technology widely used around the world to diagnose the presence of blood clots. Cyclopharm also expects to have another product coming onto the market next year – Ultralute – a product that extends the useful life of nuclear isotopes by up to 50%.

Cyclopharm has a market cap of just $72 million, but generated $4.8m in net profit in the 2015 financial year and paid a 1 cent fully franked dividend.

But the biggest catalyst could be ahead with Technegas commencing phase III trials in the US in 2012. The US has the potential to become the company’s biggest global market for Technegas.

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Motley Fool writer/analyst Mike King doesn't own shares in any companies mentioned. You can follow Mike on Twitter @TMFKinga

The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.