Investing in speculative micro cap stocks is not suitable for everyone, especially given that many do not pay dividends. In addition, as with all stock market investments, past performance is not a guarantee of any future trend, even if the micro cap stocks have previously jumped.

Investing in these types of stocks is more suitable for investors with a high tolerance for risk, and the rewards can be spectacular if the timing is right.

We also recommend having a couple of speculative, disruptive plays as part of a balanced portfolio. So without further ado, here are our two favourite micro cap stocks on the ASX at the moment.

ZipMoney (ZML)

zipMoney is interesting. Very interesting. It has piqued the attention of The CEO Magazine, as it’s a disruptive company offering consumers an easy way to pay for goods online by offering interest-free finance deals, and is seeing many people dump their credit cards when shopping online. zipMoney essentially makes loans between AU$1,000 and AU$10,000 for up to eight months, with interest-free periods for between three and six months. The loans can only be used to buy goods purchased from the company’s retail partners, which already include 2nds World.

ZipMoney is fundamentally a ‘buy now, pay later’ lender providing a simple online credit solution at point of checkout. Impressively, the company also recently secured a AU$100-million debt facility and AU$1 million of equity from US fund Victory Park Capital.

The company, founded by former Macquarie banker Larry Diamond and Peter Gray, former chief of payday lender Australian Finance Direct, did a backdoor listing in September and looks set to make deep inroads in the world of consumer lending and online shopping.

“No plastic, no banks, better terms” seems very appealing to us. (UBN)

Just like ZML, is also a genuinely disruptive stock. The company is the first cloud-based platform designed specifically for delivering services to buildings and is already attracting a strong following in the industry. transforms the traditional approach to building operations and maintenance, turning it into a dynamic online experience which improves customer service, removes operational cost, and enables new revenue streams that building operators never believed possible.

The software helps owners and managers of apartment blocks and office towers to run their buildings. It also remotely connects buildings at low cost to improve the overall efficiency and cost of all building-maintenance tasks.

In December 2015, UBN announced that it had entered into a number of new agreements in South Africa, which include one of the largest strata managers on the Western Cape—TopNotch Property Services (TopNotch). Under the agreement, TopNotch will use the community and property management functionality of the Urbanise Industry Cloud platform to manage the Sectional Title and Home Owners Association schemes of more than 9,000 units. Many building operators are seeing huge benefits by switching to use’s impressive platform.

There’s cash in the bank, no debt, overheads are low, continues to attract customers, and the upside is mind-boggling.

You should seek professional advice before making any investment decisions. Neither The CEO Magazine nor the business or any of its employees holds any responsibility for any losses incurred (if any) by acting on information provided.